Alamos Gold Announces Sale of Non-Core Royalties
23 December 2022 - 11:00AM
Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today announced that
it has entered into an agreement to sell a portfolio of non-core
royalties to Metalla Royalty & Streaming Ltd. (“Metalla”)
(TSXV:MTA; NYSE American:MTA) for proceeds of USD$5.0 million in
Metalla common shares.
The portfolio being sold consists of three royalties and one
silver stream, all of which are on assets not owned by Alamos. This
includes a silver stream on the Esperanza project in Morelos,
Mexico which was sold in April 2022, and royalties on the Fenn Gib
South, Ronda, and Northshore West exploration stage projects
located in Ontario, Canada.
As consideration for the portfolio of royalties, Alamos will be
receiving 939,355 Metalla common shares, valued at USD$5.0 million,
or US$5.3228 per common share, based on the 20-day volume weighted
average price preceding the agreement. Following completion of the
transaction, Alamos will own approximately 1.9% of Metalla’s issued
and outstanding common shares.
The sale is consistent with Alamos’ strategy of monetizing and
maximizing the value of its non-core assets while focusing on
advancing its strong portfolio of high-return growth projects. With
the monetization of the royalties, Alamos has surfaced nearly $100
million in total consideration over the past two years through the
sale of non-core assets and gains on the sale of equity securities
in other companies.
About Alamos
Alamos is a Canadian-based intermediate gold
producer with diversified production from three operating mines in
North America. This includes the Young-Davidson and Island Gold
mines in northern Ontario, Canada and the Mulatos mine in Sonora
State, Mexico. Additionally, the Company has a strong portfolio of
growth projects, including the Phase 3+ Expansion at Island Gold,
and the Lynn Lake project in Manitoba, Canada. Alamos employs more
than 1,900 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 “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons |
|
Vice President, Investor Relations |
|
(416) 368-9932 x 5439 |
|
All amounts are in United States dollars, unless otherwise
stated.
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release contains or incorporates by
reference “forward-looking statements” and “forward-looking
information” as defined under applicable Canadian and U.S.
securities laws which are referred to herein as “forward
looking-looking statements”. All statements, other than statements
of historical fact, which address events, results, outcomes or
developments that the Company expects to occur are, or may be
deemed to be, forward-looking statements and are generally, but not
always, identified by the use of forward-looking terminology such
as "expect", “is expected”, "will", 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 or the negative
connotation of such terms.
Alamos cautions readers not to place undue reliance on the
forward-looking statements in the information and content in this
news release as a number of factors could cause actual future
results, conditions, actions or events to differ materially from
the expectations, goals or intentions expressed in the
forward-looking statements. These factors include but are not
limited to: the closing of the transaction including meeting all
the necessary conditions precedent; changes in the financial
markets; changes in applicable laws and governmental regulations;
expropriation or nationalization of property; contests over title
to properties; risk of loss due to sabotage and civil disturbances;
fluctuations in the price of gold; fluctuations in relative
currency values; and the unpredictability of and fluctuation in the
trading price of Metalla’s common shares.
Additional risk factors and details with respect
to risk factors affecting the Company are set out in the Company’s
latest 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. The foregoing should be reviewed in
conjunction with the information found in this 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.
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