64.8 F
June 19, 2024
PI Global Investments

Alamos Gold seals Orford acquisition deal

Alamos Gold has signed an agreement to acquire all issued and outstanding shares of Orford Mining, consolidating its stake in several mining projects in Quebec, Canada.

The acquisition will be made by way of a court-approved plan of arrangement.

It will see Alamos Gold enhance its portfolio with the addition of the Qiqavik Gold Project and other exploration-stage assets including Nunavik Lithium, the Joutel Properties and West Raglan.

As per the agreed terms, Orford shareholders will secure 0.005588 of an Alamos common share for each share held, implying C$0.10 ($0.074) per share.

Alamos, which already owns approximately 27.5% of Orford, will issue around 0.9 million new shares, amounting to a total consideration of C$16m, excluding its current shareholding.

The Qiqavik Gold Project, a 438km² property in Nunavik, Quebec, is known for its camp scale and the 40km-long Qiqavik Break, a significant structure associated with gold mineralisation.

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By GlobalData

Orford has been exploring this underexplored property since 2016, identifying more than 40 promising targets.

Alamos will acquire interests in the West Raglan property, a 646km² area in Northern Quebec.

Wyloo Metals, under an option agreement, has already earned a 51% stake in West Raglan and plans to increase its interest to 70%.

The Joutel Eagle Property, an advanced exploration stage gold property, offers Orford the potential to earn a 100% interest through an agreement with Globex Mining Enterprises.

The Nunavik Lithium properties, covering 598km², have shown potential with the discovery of Lithium-Cesium-Tantalum bearing pegmatites and additional exploration targets for gold, following the 2023 field programme.

Alamos Gold president and CEO John McCluskey said: “Our acquisition of Orford is consistent with our strategy of building out a pipeline of high-quality, long-term projects, in good jurisdictions, to complement our near-term organic growth projects in Canada.

“Qiqavik fits that strategy perfectly as an attractive early-stage gold project, located in one of top mining jurisdictions in the world.

“We see excellent long-term potential within the underexplored Qiqavik district and look forward to building off Orford’s success with a larger and sustained exploration programme.”

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