Alamos and Argonaut Close Previously Announced Private Placement

Core Viewpoint - Alamos Gold Inc. has completed a non-brokered private placement, acquiring approximately 13.8% of Argonaut Gold Inc.'s outstanding shares for C$50 million, as part of a larger transaction to acquire all of Argonaut's shares [1][2][3]. Group 1: Private Placement Details - Alamos subscribed for 174,825,175 common shares of Argonaut at a price of C$0.286 per share, resulting in total gross proceeds of C$50 million for Argonaut [1][2]. - The proceeds from the private placement will be used by Argonaut to address immediate liquidity needs, including advancing the Magino Gold mine and general working capital, with a maximum of C$10 million allocated to U.S. and Mexican assets [2]. Group 2: Transaction Context - The private placement is part of an arrangement agreement between Alamos and Argonaut, which was established on March 27, 2024, for Alamos to acquire all issued and outstanding shares of Argonaut through a court-approved plan [2][3]. - Prior to the private placement, Alamos did not own any common shares of Argonaut, but now holds approximately 13.8% of the total outstanding shares [3]. Group 3: Company Profiles - Alamos Gold Inc. is a Canadian-based intermediate gold producer with operations in North America, including the Young-Davidson and Island Gold mines in Ontario, and the Mulatos mine in Mexico [5]. - Argonaut Gold Inc. is also a Canadian gold producer focused on becoming a low-cost, mid-tier producer, with its flagship asset being the Magino Mine, expected to be its largest and lowest-cost mine [6].