Canada’s Alamos Gold, AuRico merging in $1.5 billion deal – Mining.com
April 13, 2015
Canadian mid-sized bullion miners Alamos Gold (TSX:AGI)(NYSE:AGI) and AuRico Gold (TSX:AUQ)(NYSE:AUQ) have inked a US$1.5 billion friendly deal to merge, creating a company with operating mines in Ontario and Mexico and a minority stake in a spinoff firm working on a project in British Columbia.
The operation marks the latest tie-up to emerge among smaller miners seeking to offset falling gold prices and higher costs with cost-synergy opportunities and an increased focus on low-risk mining operations. In February, Tahoe Resources Inc. struck a $1.4 billion deal to buy Rio Alto Mining Ltd.
The Alamos-AuRico tie-up is structured as a merger of equals, the Toronto-based companies said in a joint statement. Shareholders of each will own about 50% of the merged company, which will retain the Alamos Gold Inc. name and own AuRico’s Young-Davidson mine in Ontario, its El Chanate mine in Mexico and Alamos’s Mulatos mine in Mexico.
Read More: http://www.mining.com/canadas-alamos-gold-aurico-merging-1-5-billion-deal/
