Alamos Gold Exists Turkiye to Focus on North America

SEATTLE (Scrap Monster): Canada-based Alamos Gold announced on Sunday that it would sell its Turkish development projects to Tumad Madencilik Sanayi ve Ticaret for $470-million in cash, exiting the country to focus on growth in North America.

The deal covers the Kirazlı, Agı Dagı and Çamyurt projects in north-western Turkiye, which are held through Alamos’ wholly owned Dutch subsidiaries.

“This transaction marks a positive outcome, allowing us to crystalise significant value for our Turkish assets, and utilise the proceeds to support the development of our portfolio of other high-return growth projects,” CEO John McCluskey said in a statement. “These projects are all located in North America, they are all lower cost, and they underpin one of the strongest growth profiles in our sector.”

Proceeds will go toward funding the Phase 3+ expansion of Island Gold in Ontario, the Lynn Lake project in Manitoba and the Puerto Del Aire project in Mexico, as well as reducing debt.

The transaction is expected to close in the fourth quarter, subject to regulatory approvals in Turkiye.

As part of the agreement, arbitration proceedings that Alamos’ subsidiaries had initiated against the Turkish State under the Netherlands-Turkiye Bilateral Investment Treaty will remain suspended and eventually be discontinued once contractual milestones are met.

Alamos, which also operates the Young-Davidson mine in Ontario and the Mulatos district in Mexico, employs more than 2 400 people. 

 Courtesy: www.miningweekly.com