Alamos Gold acquires Richmont Mines in $770mn deal
Alamos Gold, the Canadian-based gold producer with diversified production from three mines in Northern America, has announced that the company has acquired fellow Canadian exploration company Richmont Mines.
The acquisition will see Alamos acquire all of the issued and outstanding shares of Richmont, with a total equity value reaching close to US$770mn.
Through the acquisition, Alamos will acquire a significant mining operation in a world class jurisdiction, the Island Gold mine, in Ontario, Canada.
The deal will also confirm Alamos as one of the top 10 gold producers in North America, with nearly 60% of its production in Canada, peer leading growth, a strong balance sheet, proven management team, and increased trading liquidity providing a strong revaluation opportunity through its enhanced appeal in the market.
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John McCluskey, President and CEO of Alamos, stated: "Our combination with Richmont reflects our core strategy of creating long term value through operating high-quality assets. The Island Gold Mine is a high-quality asset in every respect. We see excellent potential for reserve and production growth from one of the highest grade, lowest cost gold mines in Canada. With this production base, growth, and balance sheet strength, Alamos will be the leading intermediate producer and presents a compelling revaluation opportunity for both Alamos and Richmont shareholders."
Renaud Adams, President and CEO of Richmont, stated: "Over the past three years, Richmont has delivered on its commitment to create value for our shareholders through our disciplined approach to growing production and reducing costs at the Island Gold Mine. This transaction builds on that commitment as our shareholders will benefit from having meaningful ownership in a diversified intermediate producer with a portfolio of high-quality assets and a proven and experienced management team that shares our commitment to creating long-term sustainable value. Our shareholders will maintain exposure to the potential of the Island Gold Mine, which is now firmly established as one of the lowest cost operations in the Americas."