Toronto, February 28, 2022 (GLOBE NEWSWIRE) — Alamos Gold Co., Ltd. ((((TSX: AGI; NYSE: AGI) (“Alamos” or “Company”) today Zacatecas Silver Corp, a non-core Esperanza Gold Project (“Esperanza”) in Morelos, Mexico. Announced that it has signed a binding agreement to sell to (“Zacatecas Silver”). “) Up to $ 60 million in consideration (“transactions “). A transaction consists of:
(I) At the completion of the transaction, a total consideration of $ 21 million, including:
- $ 5 million in cash.
- Zacatecas Silver shares $ 10 million (12.14 million common shares at a price of C $ 1.05) (“initial shares”).When
- Based on consensus long-term silver price estimates, silver metal streams are worth about $ 6 million. Under the stream, Alamos is entitled to receive 20% of the silver produced from Esperanza at a cash price of 20% of the typical spot silver price, subject to up to 500,000 ounces of silver delivered to Alamos. ..
(Ii) Additional consideration of $ 39 million upon completion of the following milestones (“accidental payments”):
- $ 5 million within 60 days of Zacatecas Silver’s approval of Esperanza’s Environmental Impact Assessment Report.
- $ 14 million within 60 days from (i) completion of the Esperanza feasibility study or (ii) Zacatecas Silver announcing the decision to build Esperanza, whichever comes first.When
- $ 20 million within 180 days of commercial production from Esperanza.
The sale of Esperanza is in line with Alamos’ strategy to monetize and maximize the value of non-core assets while focusing on driving a strong portfolio of high-profit growth projects. With the monetization of Esperanza, Alamos has earned a total of nearly $ 100 million over the past two years through the profits from the sale of non-core assets and the sale of shares of other companies.
Upon completion of the transaction, Alamos is expected to own approximately 15% of the outstanding Zacatecus Silver common stock. Combined with Silver Stream and Contingent Payments, this provides Alamos with a meaningful and continuous exposure to Esperanza.
With respect to conditional payments, Zacatecas Silver may issue shares to meet 50% of such payments, subject to Alamos, which holds up to 19.99% of Zacatecas Silver on a partially diluted basis. Shares are issued based on the volume-weighted average trading price for the 10 days prior to the issue date.
In addition, Zacatecas Silver has promised to pay a minimum of $ 7.5 million over the three years following the end of the transaction in order to drive the development of Esperanza and obtain approval for its environmental impact assessment report. If no minimum expenditure is incurred within three years of closing the transaction, the difference between the expenditure and the minimum commitment shall be added to the conditional payment.
Alamos and The Catecus Silver also enter into an investor rights agreement regarding closing that specifically provides Alamos with: 10% of Zacatecas Silver’s outstanding shares, and ii) Right to participate in future equity offerings to maintain a proportional investment in Zacatecas Silver as long as Alamos holds at least 5% of Zacatecas Silver’s outstanding shares. ..
The Catecus Silver Common Shares issued to Alamos upon completion of the transaction are subject to i) 33% of the initial shares for 6 months, ii) 33% of the initial shares for 12 months, and iii) voluntary holding period. It will be. 18 months with 34% of the initial stock.
The transaction is expected to close in the second quarter of 2022 and is subject to the normal closing conditions for this type of transaction.
Haywood Securities Inc. is a financial adviser to Alamos and Toryos LLP is a legal counsel to Alamos.
Alamos is a Canadian-based intermediate gold producer with diverse productions from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada, and the Mulattos mine in Sonora, Mexico. In addition, we have an important portfolio of projects in development in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. Our shares are traded on the TSX and NYSE under the “AGI” symbol.
Please contact us for more information.
|Scott K. Parsons|
|Vice President of Public Relations for Investors|
|(416) 368-9932 x 5439|
All amounts are displayed in US dollars unless otherwise stated.
TSX and NYSE have not reviewed or are responsible for the validity or accuracy of this release.
This news release contains “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and US securities laws, referred to herein as “forward-looking statements.” It contains. All statements, except those of historical facts dealing with events, consequences, consequences, or developments that we anticipate to occur, are forward-looking statements or may be considered as such and are always at all. Not, but generally identified by use. “Expect”, “Expected”, “Forecast”, “Get on track”, “Continue”, “Continue”, “Will”, “Believe”, “Expect”, “Intention”, “Intention” “Estimate”, “Forecast”, “Budget”, “Goal”, “Plan”, or variations of such words or phrases, and certain actions, events, or outcomes are “potential”, “potential” There is, there is a possibility, there is a possibility, there is a possibility, there is a possibility, there is a possibility, there is a possibility, there is a possibility, there is a possibility, there is a possibility, there is a possibility, there is a possibility, and there is a possibility. ..
Forward-looking statements are inevitably based on many factors and assumptions, and while management considers them reasonable at the time of making such statements, they are essentially significant business, economic, and We are exposed to technological, legal, political, and competitive uncertainties and contingencies. Known and unknown factors can cause actual results to differ materially from those predicted in forward-looking statements, and such statements and information should not be overly relied upon.
Forward-looking statements include assumptions about future corporate behavior taken by Zacatecas Silver, which we have little or no control over, and include Zacatecas, which makes all necessary expenditures in accordance with our agreement. Zacatecas has completed all the steps necessary to obtain approval for the environmental impact assessment of Esperanza. Zacatecas’s ability to complete an aggressive feasibility study and / or publish construction decisions on Esperanza, and ultimately Zacatecas’s ability to build and achieve commercial production on Esperanza.
Such factors and assumptions underlying the forward-looking statements in this news release are not limited to: Changes to current estimates of mineral reserves and resources for Esperanza. Esperanza permission; production forecast changes. State and federal orders or obligations, including subsidies or services required for general mining or Zacatecus’ business in Mexico, price fluctuations in gold or other specific commodities, exchange rate fluctuations, and the effects of inflation. ). Employee-community relationships (including Zacatecas Silver’s ability to maintain a social license to do business in Morelos, Mexico); Labor and contractor availability (and the same can be ensured in favorable conditions); Litigation and administrative procedures; future mining inputs and increased labor-related costs, delays in development at Esperanza, mining and minerals related to Zacatecus Silver’s ability to secure additional capital to carry out its business plans. Inherent risks and dangers associated with uncertainty, speculative nature and development of mineral exploration, acquisition and my risks Required licenses, permits, acquisition of permits, property ownership disputes. Expropriation or nationalization of property. Political or economic development of Mexico. Increased costs and risks associated with the potential impacts of climate change. Changes in national and local government laws, regulations, or regulations (including tax law) in Mexico.
We disclaim any intention or obligation to update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by applicable law.
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Alamos Gold Announces Sale of Esperanza Gold Project for a Total Consideration of Up to $ 60 Million, Canadian Business Journal
Source link Alamos Gold Announces Sale of Esperanza Gold Project for a Total Consideration of Up to $ 60 Million, Canadian Business Journal