Alamos Gold is proposing a friendly acquisition of Richmont Mines’ flagship Island Gold Mine in a $933-million all-stock deal. The Wawa-area mine is touted by Alamos as a high-grade, low-cost producer with plenty of upside to add ounces over the next few years.
“We’re adding a high-quality asset in a great jurisdiction,” said Alamos Gold president-CEO John McCluskey in a Sept. 11 conference calls with analysts. If the transaction is finalized this fall, he places Island Gold as a top-three operating asset that would propel Alamos among the top 10 North American gold miners, capable of producing more than 500,000 ounces a year.
“The addition of Island Gold elevates Alamos to a new level, solidifying its position as a leading intermediate gold producer,” said McCluskey in his remarks. Shareholder meetings at both companies to approve the transaction will take place in mid-November.
Island Gold is located 83 kilometres northeast of Wawa and 15 kilometres from Dubreuilville. Commercial production began in October 2007 with 430,000 ounces produced in the decade since.
Alamos operates the Young Davidson mine near Matachewan. It’s a six-hour drive between the two northeastern Ontario operations.
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