Shareholders approve Alamos Gold takeover of Richmont Mines

The Island Gold Mine of Richmont Mines located 83 km northeast of Wawa, northern Ontario. Source: Richmont Mines Inc.

Alamos Gold Inc. [AGI-TSX, NYSE] and Richmont Mines Inc. [RIC-TSX, NYSE] announced that shareholders of both companies have overwhelmingly voted in favour of the plan of arrangement at their respective special meetings of shareholders.

The transaction, whereby Alamos will acquire all of the issued and outstanding shares of Richmont, was approved by 98.46% of votes cast by Alamos shareholders and 92.56% of votes cast by Richmont shareholders. The transaction is expected to close November 23, 2017, subject to regulatory approvals.

“With the acquisition of Richmont we are strengthening our asset base and profitability. We are very pleased with the strong support for the transaction and expect to create significant value for shareholders as we deliver on the expansion at Island Gold and continue to unlock its exploration potential,” said John A. McCluskey, President and CEO of Alamos.

“This strategic transaction delivers on our commitment to create long-term sustainable value as our shareholders will benefit from having meaningful ownership in a diversified intermediate producer with a portfolio of high-quality assets and a proven and experienced management team while maintaining exposure to the significant potential of the Island Gold Mine,” said Renaud Adams, President and CEO of Richmont.

Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson mine in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. The company also has a portfolio of development stage projects in Canada, Mexico, Turkey, and the United States.

Richmont Mines currently produces gold from the Island Gold Mine in Ontario and is also advancing development of the significant high-grade resource extension to the east and at depth.

Filed in: Gold, Resources

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