(Kitco News) – Merger and acquisition activity in the mining sector is picking up as Alamos Gold announces its plan to buy Argonaut Gold in an all-shares transaction valued at $325 million.
The two companies announced the friendly acquisition on Wednesday before the North American equity market open. Under the agreement, Argonaut shareholders will receive 0.185 shares of Alamos and one share of a spinoff company.
“This represents a 34% premium based on Argonaut’s and Alamos’ closing prices on March 26, 2024, on the Toronto Stock Exchange (“TSX”), and a 41% premium based on both companies’ 20-day volume-weighted average prices,” Alamos said in a statement.
Alamos Gold will bring Argonaut’s Magino project into the fold while spinning out its other properties. Argonaut’s assets in the United States and Mexico will be spun out to its existing shareholders as a newly created junior gold producer (SpinCo).
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