VANCOUVER (miningweekly.com) – The majority of Alamos Gold shareholders have voted in favour of its planned $747-million acquisition of boutique gold producer Richmont Mines.
Richmont shareholders also on Thursday approved the transaction.
The transaction, whereby Alamos will acquire all of the issued and outstanding shares of Richmont, was approved by 98.46% of votes cast by Alamos shareholders and 92.56% of votes cast by Richmont shareholders.
The transaction is expected to close on November 23, subject to applicable regulatory approvals and the satisfaction of other customary conditions.
"With the acquisition of Richmont, we are strengthening our asset base and profitability. We are very pleased with the strong support for the transaction and expect to create significant value for shareholders as we deliver on the expansion at Island Gold and continue to unlock its exploration potential," Alamos president and CEO John McCluskey said in a statement.
The transaction will consolidate Alamos’ position as a midtier gold producer, adding the Island Gold free-cash-flowing underground mine, in Ontario, to its portfolio and expanding pro forma output by 25% a year.