Alamos Gold Announces Closing of Argonaut Gold Acquisition

Core Viewpoint - Alamos Gold Inc. has successfully completed the acquisition of Argonaut Gold Inc., enhancing its position as a Canadian-focused intermediate gold producer with significant synergies expected from the integration of the Magino and Island Gold mines [1][4]. Transaction Details - The acquisition includes Argonaut's Magino mine, while its assets in the U.S. and Mexico have been spun out into a new entity, Florida Canyon Gold Inc. [2] - Shareholders of Argonaut will receive 0.0185 of a Class A common share of Alamos and 0.1 of a common share of Florida Canyon Gold for each Argonaut share [2]. - Alamos issued approximately 20.4 million Class A Shares as part of the transaction, resulting in approximately 419.7 million Class A Shares outstanding post-transaction [3]. Shareholder Structure - Post-transaction, Alamos and Argonaut shareholders own approximately 95% and 5% of the pro forma company, respectively [3]. - Alamos completed a $10 million private placement into Florida Canyon Gold, increasing its equity interest to approximately 19.99% [3]. Market Impact - Argonaut's common shares are expected to be de-listed from the Toronto Stock Exchange on July 16, 2024, while Florida Canyon Gold's shares will commence trading on the TSX Venture Exchange on the same date [3]. Strategic Benefits - The integration of the Magino and Island Gold mines is anticipated to unlock significant synergies through shared infrastructure, creating one of the largest and lowest-cost gold mines in Canada [4]. - The long mine lives and ongoing exploration success of the combined operations support significant longer-term expansion potential [4]. Financial Instruments - Holders of Argonaut's 4.625% senior unsecured convertible debentures will receive Alamos common shares upon conversion, based on the established exchange ratio [7][8]. - Alamos will make an offer to purchase the debentures within 30 days of the transaction completion [8]. Company Overview - Alamos Gold is a Canadian-based intermediate gold producer with diversified production from three operations in North America, including the Young-Davidson mine and Island Gold District in Ontario, and the Mulatos District in Mexico [9]. - The company is committed to sustainable development and employs over 2,400 people [9].