Friday, March 29, 2024
HomefinanceAlamos Gold, AuRico Gold merging in $1.5 billion deal

Alamos Gold, AuRico Gold merging in $1.5 billion deal

Canadian gold mining companies Alamos Gold and AuRico Gold are merging in a deal valued at approximately $1.5 billion.

The combined business will have assets including AuRico's Young-Davidson mine in Canada and Alamos' Mulatos mine in Sonora, Mexico.

John McCluskey, president and CEO of Alamos Gold, will serve as CEO of the combined business. The board of the combined business will have 10 members, with five directors from each company.

Read MoreCorporate deals hit 5-year high—Here's why

Once the deal is complete, shareholders of both companies will each own about 50 percent of the combined business, which will take the name Alamos Gold. A new company, which will be called AuRico Metals, will house AuRico's Kemess project.

Alamos shareholders will receive one share in the combined business and $0.0001 in cash for each share they own. AuRico shareholders will receive 0.5046 shares of the combined business for each share they own.

The boards of both companies unanimously approved the merger.

The transaction, which is expected to close in the second quarter, still needs approval from shareholders.

RELATED ARTICLES
- Advertisment -

Most Popular