By By Adriano Marchese
Toronto, Canada – Mining company Orford Mining has announced that it will be acquired by Alamos Gold in a deal worth CAD 24 million ($17.9 million). The transaction is set to close in April.
Acquisition Deal Details
Under the agreement, Alamos Gold, an intermediate gold producer based in Toronto and a current holder of 27.5% of Orford, will purchase all the remaining issued and outstanding common shares of Orford at a price of CAD 0.10 per share. This move comes as Orford’s shares experienced a decline of 40% over the past year, closing at CAD 0.05 on Friday.
In exchange for their shares, Orford shareholders will receive 0.005588 of an Alamos common share for each share held in Orford.
Qiqavik Project and Strategic Fit
Alamos CEO John McCluskey expressed his enthusiasm for the acquisition, highlighting the potential of Orford’s Qiqavik project in Quebec. He believes this aligns with Alamos Gold’s strategy of developing a portfolio of high-quality, long-term projects that includes early-stage gold projects in favorable mining jurisdictions.
Conclusion
The acquisition of Orford Mining by Alamos Gold represents a significant milestone for both companies. The deal is expected to enhance Alamos Gold’s project pipeline while providing an opportunity for Orford shareholders to benefit from the strength and resources of Alamos Gold.
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