JOHANNESBURG (miningweekly.com) – Dual-listed Alamos Gold and TSX-listed AuRico Metals have completed their merger, forming the new Alamos, which president and CEO John McCluskey says has transformed Alamos into a leading intermediate producer.

“With diversified gold production from three North American mines, a portfolio of low-cost development projects in safe jurisdictions and one of the strongest balance sheets of our peer group, we look forward to creating significant long-term value for our shareholders.

"We are very happy to bring the transformative Alamos-AuRico merger to fruition as we believe the new company will be a stand-out performer in the intermediate gold producer space,” he said on Thursday.

The completion of the merger also marked the inception of a new company, AuRico Metals, formed around a portfolio of high-quality producing gold royalties and the advanced Kemess project.

“We are very excited to get behind this new vehicle as we strive to deliver sustained value creation for our shareholders," added AuRico Metals executive chairperson Scott Perry. 

Pursuant to the arrangement, certain assets of the former AuRico, including the Kemess project, certain royalties and cash, were transferred to AuRico Metals, in which Alamos now held about 4.9%.

About 95.1% of the common shares of AuRico Metals were distributed to the former Alamos and former AuRico shareholders.

Each former Alamos share held was ultimately exchanged for one Class-A common share of Alamos, $0.0001 in cash, and 0.4397 AuRico Metals shares, while each former AuRico share held was ultimately exchanged for 0.5046 Class-A shares and 0.2219 AuRico Metals shares.

Upon closing, Alamos had about 255-million Class-A shares outstanding with the former Alamos and former AuRico shareholders each owning about 50%. AuRico Metals had about 118-million shares outstanding with the former Alamos and former AuRico shareholders each owning about 50% of the shares not held by Alamos.

It is anticipated that Alamos will start trading on the TSX and NYSE under the ticker “AGI” and AuRico Metals on the TSX under the ticker "AMI" on Monday.

The former Alamos and former AuRico shares would be delisted from the TSX and NYSE that same day.