Alamos sells Turkish development assets for $470 million
Alamos Gold Inc. [AGI-TSX, NYSE] has announced the sale of its Turkish development projects for $470 million.
The Kirazli, Agi Dagi and Camyurt projects, located in Northwest Turkey have been sold to Tumad Madencilik Sanayi ve Ticaret A.S. (Tumad), a mining company operating in the Republic of Turkey.
The purchase price is payable in three installments as follows: $160 million upon closing, US$160 million in the first anniversary of closing and $150 million in the second anniversary of closing, which is expected to occur in the fourth quarter of 2025.
Alamos said each of the second and third installment payments is secured by a bank guarantee provided by international financial institutions with investment grade ratings, ensuring guaranteed proceeds to Alamos of $470 million.
“This transaction marks a positive outcome, allowing us to crystallize significant value for our Turkish assets, and utilize the proceeds to support the development of our portfolio of other high return growth projects,” said Alamos President and CEO John A. McCluskey. “These projects are all located in North America, they are all lower cost, and they underpin one of the strongest growth profiles in the sector,” he said.
Alamos shares rose 2.1% or 96 cents to $46.59 on Monday. The shares trade in a 52-week range of $46.07 and $24.47.
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America, including the Young-Davidson, and Island Gold mines in northern Ontario, and the Mulatos District in Sonora Mexico.
The Mulatos mine is Alamos Gold’s founding operation. It was acquired for US$10 million and has produced over 2.0 million ounces of gold, generating US$600 million in free cash flow since 2005. Mulatos is expected to produce between 160,000 and 170,000 ounces of gold this year at an all-in-sustaining cost of US$1,000 to US$1,050 an ounce.
The company also has a strong portfolio of growth projects, including the Phase 3+ expansion at the Island Gold and Lynn Lake project in Manitoba.
Back in April, 2025, Alamos announced a a development plan for its Puerto Del Aire (PDA) project in Sonora, Mexico.
PDA is a higher-grade underground deposit adjacent to the main pit at the company’s Mulatos mine, and consists of five zones, including PDA1, PDA2, Gap, Victor and Estrella.
PDA will be accessed via two portals located in the east wall of the Mulatos Pit.
“Given PDA’s attractive economics and proximity to the existing Mulatos infrastructure, the company anticipates starting development of PDA in 2025 with the first production expected by 2027,” the company has said. “The project is expected to nearly triple the mine life of the Mulatos District, extending production into 2035,” it said. Meanwhile, there are excellent opportunities currently being tested that could extend the mine life further and enhance already robust economics through the significant exploration potential of both PDA and Cerro Pelon, as outlined earlier today, the company added.