TORONTO, ONTARIO--(Marketwired - Aug 30, 2013) - All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Inc. (AGI.TO)(NYSE:AGI) ("Alamos" or the "Company") today reported the completion of the previously announced acquisition (the "Acquisition") of all of the issued and outstanding common shares of Esperanza Resources Corp. ("Esperanza"). Shareholders of Esperanza were overwhelmingly supportive of the Acquisition, with 96.25% of the votes cast at a special meeting of the shareholders held on August 27, 2013 being voted in favour. A Final Order was granted by the Supreme Court of British Columbia on August 29, 2013 approving the Plan of Arrangement pursuant to which the Transaction was implemented.
"We are very pleased to announce the closing of the Esperanza acquisition," said John A. McCluskey, President and Chief Executive Officer. "We believe the Esperanza Gold Project fits the Alamos profile perfectly, as a low capital intensity, low cost, and low technical risk project that will augment our strong development pipeline. While the transaction represents a small portion of our market capitalization, we believe it has the potential to grow our production by more than 50% in Mexico. We look forward to work on resubmission of the Esperanza Gold Project EIA over the next 18 months and advancing it towards development."
Following completion of the Esperanza Acquisition, Alamos has approximately $445m in cash, no debt and strong ongoing cash flow generation. With this strong financial position, the Company expects to fund development of Esperanza and its Turkish projects internally.
About Alamos
Alamos is an established Canadian-based gold producer that owns and operates the Mulatos Mine in Mexico, and has exploration and development activities in Mexico and Turkey. The Company employs more than 600 people and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities. Alamos has approximately $445 million in cash and cash equivalents, is debt-free, and unhedged to the price of gold. As of August 29, 2013, Alamos had 127,525,986 common shares outstanding (132,423,186 shares fully diluted), which are traded on the TSX and NYSE under the symbol "AGI".
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding forecast gold production, gold grades, recoveries, waste-to-ore ratios, total cash costs, potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.