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Alamos agrees to Corex equity financing to fund Santana project

12th October 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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VANCOUVER (miningweekly.com) – Alamos Gold has agreed to enter into a subscription agreement with fellow Canadian resource company Corex Gold to obtain financing for Corex's Santana project, in Sonora, Mexico.

The total financing of $2.83-million will also be used to settle certain outstanding Corex indebtedness and for general working capital purposes.

Corex will issue 25.3-million common shares to Alamos at a price of $0.10 apiece, while also providing Corex management the option to subscribe to a further three-million shares at $0.10 each.

Corex has granted Alamos the right to nominate up to two directors to its board.

Further, Alamos has received a participation right to maintain its pro rata share ownership in company at up to 19.99%.

Pending certain conditions, the transactions are expected to close concurrently on October 20.

Corex owns 100% of the 7 700 ha land package, located 50 km south-east of Alamos Gold’s Mulatos mine. Corex has been exploring a multimillion-ounce epithermal gold deposit at Santana, which, according to the company, is amenable to openpit mining and heap leaching.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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