Alamos Gold (TSX: AGI; NYSE: AGI) announced on Monday that it will acquire Quebec-focused junior Orford Mining (TSXV: ORM) in an all-share transaction valuing the company at $24 million or 10¢ per share.
Alamos already owns 27.5% of the company’s shares. If the acquisition is approved by Orford shareholders at a meeting scheduled for March, they will receive 0.005588 of an Alamos share for each Orford share held.
The offer represents a 114% premium to Orford’s closing price on Jan. 12. The deal includes the Qiqavik gold project, is a camp scale property covering 438 sq. km in the Cape Smith Belt in Nunavik, Que.
Qiqavik covers the 40-km-long Qiqavik Break, a major crustal-scale structure controlling gold mineralization on the belt. Early-stage exploration completed to date indicates that high-grade gold occurrences are controlled by structural splays off the Qiqavik Break, which extends along strike over the 40 km length of the project.