Alamos Gold, Orsa Ventures announce friendly merger
TORONTO (miningweekly.com) – TSX-listed Alamos Gold and TSX-V-listed Orsa Ventures have entered into a definitive agreement whereby Alamos would buy all outstanding shares of the exploration junior through a court-approved plan of arrangement, which values Orsa’s equity at about C$3.5-million.
The deal gives Alamos access to Orsa’s precious-metals properties in the Western US, including Alamos assuming ownership of Orsa's right to earn a 100% interest in the Quartz Mountain property, in Oregon, as well as other assets in Oregon and Nevada.
The Quartz Mountain property is located on the northern extension of the prolific Basin and Range Province of Nevada and hosts an inferred resource of 2.85-million ounces of gold, grading 0.8 g/t.
Under the terms of the agreement, Orsa shareholders will get C$0.10 a share in cash for each Orsa common share held.
"This is aligned with our strategy of adding low-cost quality ounces to our pipeline, with significant potential upside. The established resource and location in Nevada makes this a compelling, low-risk opportunity for us,” Alamos president and CEO John McCluskey said.
Orsa CEO Linda Thorstad added that the transaction represented a premium to its current share price, in what has been a challenging and difficult market with volatile metal prices.
Orsa’s board unanimously approved the transaction and would recommend that its shareholders vote in favour of the transaction.
Alamos’ shares traded as high as C$15.71 apiece on Tuesday when the announcement was made, before giving back to trade at C$14.75 apiece on Wednesday morning. Orsa’s shares spiked 216% following the announcement on Tuesday and, on Wednesday, traded at C$0.095 a share.
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