New deal Canadian miner Alamos Gold has announced that it has entered into a definitive agreement under which the business will purchase all of the issued and outstanding shares of Argonaut Gold. The deal is to enable Alamos to become the country’s largest and lowest-cost gold miner.
“As part of the Transaction, Alamos will acquire Argonaut’s Magino mine, located adjacent to its Island Gold mine in Ontario, Canada. The integration of the two operations is expected to create one of the largest and lowest cost gold mines in Canada. Through the use of shared infrastructure, Alamos expects to unlock significant value with immediate and long-term synergies expected to total approximately US$515 million,” Alamos Gold said in a statement.
The Toronto-based miner says that the addition of Magino is to expand “Alamos’ combined gold production to over 600,000 ounces per year, with longer term production potential of over 900,000 ounces per year. The combination materially enhances Alamos’ position as a leading, Canadian focused, intermediate producer, with growing production and declining costs.”