Alamos Gold to buy Aurizon mines
TORONTO (miningweekly.com) – Toronto-listed Alamos Gold on Monday said it would buy Aurizon Mines for about C$780-million in cash and shares in an attempt to access Aurizon’s Quebec-based assets, including the operational Casa Berardi mine, in the north of the province.
Under terms of the offer, which expires at 17:00 Eastern Standard Time on February 19, Alamos proposes to acquire all of the outstanding common shares of Aurizon for C$4.65 per Aurizon share, or for a combination of cash and Alamos shares.
The offer represented a premium of about 40% based on the closing price of C$3.33 for the Aurizon shares on the TSX last Wednesday.
Alamos, which had been buying Aurizon shares in recent days, said it currently held 16% of the issued and outstanding shares of Aurizon. The company believeed it would create a combined company with an estimated market capitalisation of $2.6-billion on closing the transaction.
Aurizon on its website said it expected the Casa Berardi mine, which has been operating for six years, to produce about 137 000 oz of gold in 2012. Aurizon has eight properties in Quebec.
“We believe the combined companies will form one of the strongest and lowest-risk production and growth profiles in the gold sector today. The offer, combining the world-class assets of the two companies, demonstrates Alamos’ ability to identify and pursue opportunities,” Alamos president and CEO John McCluskey said in a statement.
Alamos added that the offer will be fully financed and will not require approval by Alamos shareholders.
Dundee Capital Markets acts as Alamos’ financial adviser.
Alamos’ TSX-listed stock declined by 9.4% to C$15.33 apiece on Monday, while that of Aurizon rose sharply by 33.14% to C$4.54 apiece.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation