[caption id="attachment_1003719944" align="aligncenter" width="478"] High grade results from recent underground exploration at the Island Gold mine has pointed toward the strong possibility of expansion. (Credit: Richmont Mines)
TORONTO – Alamos Gold
and Richmont Mines
have announced the signing of a definitive agreement whereby Alamos will acquire all of the Richmont shares. The deal has a total equity value of US$770 million on a fully diluted basis.
Each Richmont common share will be exchanged for 1.385 Alamos shares. The exchange ratio puts a value of C$14.20 on each Richmont share, a 22% premium to Richmont’s closing price on Sept. 3, 2017, and a 32% premium based on both companies 20-day volume weighted average prices on the same date.
Alamos is anticipating the acquisition of Richmont assets will launch it into the ranks of intermediate gold producers. Richmont’s chief asset is the Island Gold mine in Northern Ontario. That mine produced 83,323 oz. of gold in 2016, and recent exploration is unveiling very high gold values.
Alamos output is underpinned by the Young-Davidson mine near Timmins, Ont., and the El Chanate and Mulatos mines in Mexico. In 2016 they produced a total of 392,000 oz. of gold.
More information about the arrangement is posted at either company’s website, www.AlamosGold.com
Separately, Monarques Gold
) of Toronto has agreed to acquire all of Richmont’s assets in Quebec, giving Richmont a 19.9% interest in Monarques when the all-share deal is completed. The deal includes the Beaufor mine and mill, the Camflo mill, and the Chimo, Monique and Wasamac properties. Monarques has also arranged to sell its Courvan property to Probe Metals.