Brief: Canada's Alamos Gold To Buy Argonaut Gold In $516 Mln Deal

Alamos Gold

27/03/2024 11:40

March 27 (Reuters) - Alamos Gold and Argonaut Gold:
    * ALAMOS GOLD ANNOUNCES FRIENDLY ACQUISITION OF ARGONAUT
GOLD
    * ALAMOS EXPECTS TO UNLOCK SIGNIFICANT VALUE WITH IMMEDIATE
AND
LONG-TERM SYNERGIES EXPECTED TO TOTAL APPROXIMATELY US$515
MILLION
    * MAGINO IS EXPECTED TO INCREASE ALAMOS' COMBINED GOLD
PRODUCTION
TO OVER 600,000 OUNCES PER YEAR
    * ARGONAUT GOLD- WITH TRANSACTION, ARGONAUT'S ASSETS IN US
AND
MEXICO WILL BE SPUN OUT TO EXISTING SHAREHOLDERS AS NEWLY
CREATED JUNIOR GOLD PRODUCER
    * ARGONAUT GOLD: VIA USE OF SHARED INFRASTRUCTURE, ALAMOS
SEES TO
UNLOCK SIGNIFICANT VALUE WITH IMMEDIATE AND LONG-TERM SYNERGIES
EXPECTED TO $515 MILLION
    * EACH ARGONAUT COMMON SHARE OUTSTANDING WILL BE EXCHANGED
FOR
0.0185 ALAMOS COMMON SHARES AND 1 SHARE OF SPINCO(
    * ARGONAUT GOLD- UPON DEAL COMPLETION , EXISTING ALAMOS AND
ARGONAUT SHAREHOLDERS WILL OWN ABOUT 95% AND 5% OF PRO FORMA
COMPANY, RESPECTIVELY
    * ARGONAUT: ALAMOS EXPECTS TO ISSUE ABOUT 20.3 MILLION
COMMON
SHARES AS PART OF TRANSACTION, REPRESENTING AN EQUITY VALUE OF
ABOUT US$276 MILLION
    * EXCHANGE RATIO IMPLIES ESTIMATED TOTAL CONSIDERATION OF
C$0.40
PER ARGONAUT COMMON SHARE
    * ALAMOS EXPECTS TO ISSUE ABOUT 20.3 MILLION COMMON SHARES
AS PART
OF DEAL, REPRESENTING  EQUITY VALUE OF APPROXIMATELY US$276
MILLION
    * DEAL FOR ENTERPRISE VALUE OF US$516 MILLION

Source text for Eikon:  ID:nGNXc1lWpM 

 ((Reuters.Briefs@thomsonreuters.com;))