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Esperanza gets shareholder go-ahead to sell

28th August 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – TSX-V-listed Esperanza Resources’ shareholders on Tuesday approved a takeover by TSX- and NYSE-listed Alamos Gold.

Alamos offered to buy all the issued and outstanding shares of the company, which owns the Esperanza gold project, in Morelos, Mexico, for C$69.4-million, or C$0.85 a share, in cash.

Over 96.25% of the votes cast by Esperanza shareholders were in favour of the deal.

This comes days after Alamos raised “significant” concerns over the impact that the Mexico government’s newly affected amendment to Article 71 of the Law of Rural Sustainable Development will have on the project’s viability.

The new Morelos state law restricts the use of cyanide, which is used in the recovery of gold and silver in mining operations.

However, despite the concerns and continuing its risk assessments, Alamos would progress the transaction, with Alamos president and CEO John McCluskey saying that the company was well-positioned to manage the risks of the project.

The deal was expected to close on Friday, subject to approval by the Supreme Court of British Columbia.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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