Alamos Gold Inc. has acquired Argonaut Gold Inc. in a deal valued at $440 million (US$325 million), creating one of Canada's largest, lowest-cost gold mines.
The transaction included Alamos obtaining Argonaut's Magino mine in Ontario, expected to significantly increase Alamos' gold production. Argonaut's assets in the U.S. and Mexico were spun off into a new entity, SpinCo, for its shareholders. Each Argonaut share was exchanged for 0.0185 Alamos shares and one SpinCo share, reflecting a 34 percent premium based on the closing prices on March 26, 2024.
The deal promised operational synergies worth about $697 million (US$515 million), with Alamos' production potentially exceeding 900,000 ounces annually. Alamos also committed to a $50 million private placement in Argonaut, solidifying its financial and operational footprint in the gold mining sector.
Torys LLP acted as counsel to Alamos Gold with a team led by Kevin Morris and includes Braden Jebson, Kendall Grant, Max Ledger and Maddy Beaudry (corporate/M&A), Chris Bornhorst and Connor Murray (U.S. securities), Gillian Dingle (litigation), Jennifer Lennon (executive compensation), Omar Wakil and Rebecca Wagner (regulatory), Andrew Wong and Steve Marshall (Canadian tax), David Mattingly and Michelle Lu (U.S. tax). Alamos Gold’s team was led by Nils Engelstad (Senior Vice President, General Counsel) and Vanessa Voakes (Director, Legal).
Bennett Jones LLP acted as counsel to Argonaut Gold Inc.