Business
Alamos Gold Announces Friendly Acquisition of Richmont Mines - Solidifies Position as a Leading Intermediate Gold Producer
Alamos Gold Announces Friendly Acquisition of Richmont Mines - Solidifies Position as a Le...
About this update from Richards Group Inc.
[{"type":"text","content":"\n\n\n\nAlamos Gold Announces Friendly Acquisition of Richmont Mines - Solidifies Position as a Leading Intermediate Gold Producer\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Sept. 11, 2017\n\n\n\nTORONTO, Sept. 11, 2017 /CNW/ - Alamos Gold Inc. (\"Alamos\") (TSX: AGI) (NYSE: AGI) and Richmont Mines Inc. (\"Richmont\") (TSX: RIC) (NYSE: RIC) are pleased to announce that they have entered into a definitive agreement (the \"Agreement\") whereby Alamos will acquire all of the issued and outstanding shares of Richmont pursuant to a plan of arrangement (the \"Transaction\"), further enhancing Alamos' position as a leading intermediate gold producer. \n\nUnder the terms of the Agreement, all of the Richmont issued and outstanding common shares will be exchanged on the basis of 1.385 Alamos common shares for each Richmont common share (the \"Exchange Ratio\"). The Exchange Ratio implies consideration of C$14.20 per Richmont common share, based on the closing price of Alamos common shares on the Toronto Stock Exchange (\"TSX\") on September 8, 2017. This represents a 22% premium to Richmont's closing price and a 32% premium based on both companies' 20-day volume-weighted average prices, both as at September 8, 2017 on the TSX.  This implies a total equity value of approximately US$770 million on a fully diluted in-the-money basis and an enterprise value of US$683 million. \n\nUpon completion of the Transaction, existing Alamos and Richmont shareholders will own approximately 77% and 23% of the pro forma company, respectively.\n\nConcurrent with the announcement of the Transaction, Richmont announced the sale of the Beaufor Mine, the Camflo Mill and the Wasamac development project located in Quebec (collectively the \"Quebec Assets\"). Further details regarding the sale of the Quebec Assets can be found in the Richmont press release dated September 11, 2017. The sale of the Quebec Assets is the culmination of a strategic review process that Richmont publicly disclosed in Q1 2017. The sale is expected to cl...