TORONTO - Alamos Gold Inc . (TSX:NYSE:AGI; NYSE:AGI) has announced a definitive agreement to acquire all issued and outstanding shares of Orford Mining Corporation (TSXV:ORM), a move that will expand its portfolio with several prospective projects in Quebec, including the Qiqavik Gold Project.
Under the terms of the arrangement, Orford shareholders will receive 0.005588 of an Alamos common share for each Orford share, equivalent to C$0.10 per Orford share based on Alamos's recent trading price. Alamos currently holds approximately 27.5% of Orford’s basic common shares outstanding and, excluding this existing ownership, will issue around 0.9 million shares for a total consideration of C$16M.
John A. McCluskey, President and CEO of Alamos, expressed that the acquisition aligns with the company's strategy to build a pipeline of high-quality, long-term projects in favorable mining jurisdictions. He highlighted the Qiqavik Gold Project as an attractive early-stage gold project with excellent long-term potential in an underexplored district.
The Qiqavik Gold Project covers 438 square kilometers in the Cape Smith Belt, Nunavik, Quebec, and is marked by the Qiqavik Break, a major structure controlling gold mineralization. Exploration since 2016 has identified over 40 targets, including high-grade boulder and gold grain-in-till trends, and outcrop gold showings.
Alamos will also acquire interests in the West Raglan, Joutel Properties, and Nunavik Lithium projects, with Wyloo Metals Pty. Ltd. having the option to earn up to 80% of the West Raglan Project for expenditures of C$25M over seven years. The Joutel Eagle Property, adjacent to the past-producing Eagle-Telbel mine, has shown multiple gold zones through drilling.
The acquisition is expected to consolidate Alamos's ownership of Orford, resulting in Alamos owning all of Orford’s common shares post-transaction. The news release serves as an early warning report under applicable securities laws, with further details available on the SEDAR+ profile of Orford.
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America and a portfolio of growth projects. The company is committed to sustainable development standards and trades on the TSX and NYSE under the symbol AGI.
This article is based on a press release statement from Alamos Gold Inc.
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