Alamos Gold Announces Sale of Portfolio of Non-Core Royalties
Alamos Gold Inc.
) (“Alamos” or the “Company”) today reported that
it has entered into an agreement for the sale of a portfolio of
non-core royalties to Metalla Royalty & Streaming Ltd.
(“Metalla”) (TSXV:MTA) for proceeds of USD$8.0 million in Metalla
common shares with the right to receive an additional USD$0.6
million upon Metalla’s exercise of the La Fortuna option.
The portfolio of 18 royalties being sold are all on assets not
owned by Alamos. This includes a 2% NSR royalty on the El Realito
property, adjacent to the La India mine in Sonora, Mexico and a
1.5% NSR royalty on the Wasamac project, and 1.0% NSR royalty on
the Beaufor Mine, both located in Quebec, Canada. The majority of
the remaining royalties being sold are on exploration stage
As consideration for the portfolio of royalties, Alamos will be
receiving 8,239,698 Metalla common shares, valued at USD$8.0
million, or CAD$1.30 per common share, based on the 10-day volume
weighted average price preceding the agreement. Following
completion of the transaction, Alamos will own approximately 6.26%
of Metalla’s issued and outstanding common shares.
The sale of the royalties is consistent with the Company’s
strategy of surfacing value from within its non-core assets.
Alamos is a Canadian-based intermediate gold producer with
diversified production from four operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern
Ontario, Canada and the Mulatos and El Chanate mines in Sonora
State, Mexico. Additionally, the Company has a significant
portfolio of development stage projects in Canada, Mexico, Turkey,
and the United States. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
FOR FURTHER INFORMATION, PLEASE CONTACT:
|Vice President, Investor Relations
|(416) 368-9932 x 5439
All amounts are in United States dollars, unless otherwise
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
This news release contains statements which are, or may deemed
to be, forward-looking information within the meaning of applicable
Canadian and U.S. securities laws (“forward-looking
statement(s)”). All statements in this news release, other
than statements of historical fact, which address events, results,
outcomes or developments that Alamos expects to occur are, or may
be deemed to be, forward-looking statements. Forward-looking
statements are generally, but not always, identified by the use of
forward-looking terminology such as "expects", “is expected”
"believes", "anticipates", "will", "intends", "estimates",
"forecast", "budget" or variations of such words and phrases and
similar expressions or statements that certain actions, events or
results ”may", "could", "would", "might" or "will" be taken, occur
or be achieved.
Forward-looking statements are necessarily based upon a number
of factors and assumptions that, while considered reasonable by
management at the time of making such statements, are inherently
subject to significant business, economic, legal, political and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements.
Such factors and assumptions underlying the forward-looking
statements in this news release include, but are not limited to:
the speculative nature of mineral exploration and development,
including the risks of obtaining and maintaining necessary
licenses, permits and authorizations; changes to current estimates
of mineral reserves and resources; fluctuations in the price of
gold; changes in foreign exchange rates (particularly the Canadian
dollar and U.S. dollar); the impact of inflation; expropriation or
nationalization of property; availability of and increased costs
associated with mining inputs and labour; contests over title to
properties; changes in national and local government legislation
(including tax legislation), controls or regulations and risk
of loss due to sabotage and civil disturbances.
Additional risk factors affecting the Company are set out in the
Company’s latest Form 40-F/ Annual Information Form and MD&A,
each under the heading “Risk Factors”, available on the SEDAR
website at www.sedar.com or on EDGAR at www.sec.gov., and should be
reviewed in conjunction with this. The foregoing should be reviewed
in news release. The Company disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by applicable law.