Alamos Gold Signed Agreement to Acquire Oxford Mining

SEATTLE (Scrap Monster): Alamos Gold announced that it has reached a definitive agreement with Oxford Mining Corporation, pursuant to which it will acquire all of the issued and outstanding shares of the latter.

The transaction will further consolidate Alamos Gold’s existing ownership of Oxford shares. More importantly, Alamos will add the highly prospective Qiqavik Gold Project, located in Quebec, Canada to its fold. Also, it will result in acquisition of interests in several critical mineral and gold projects such as West Raglan, the Joutel Properties, and Nunavik Lithium, said the company press release.

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As per terms of the agreement, Orford shareholders will receive 0.005588 of an Alamos common share for each Orford share. It must be noted that Alamos currently owns 61,660,902 Orford shares, which equates to nearly 27.5% of Orford’s basic common shares outstanding. Alamos plans to issue around 0.9 million shares for a total consideration of C$16 million.

Commenting on the development, John A. McCluskey, President and Chief Executive Officer noted that the acquisition is in line with the company’s strategy of building out a pipeline of high-quality, long-term projects, in good jurisdictions. Furthermore, it will complement Alamos’ near-term organic growth projects in the country, he added.