Alamos Gold Sells Quartz Mountain Project for Up to $21 Million
Alamos Gold Completes Sale of Quartz Mountain Gold Project
All amounts are in United States dollars, unless stated otherwise.
Toronto, April 3, 2025 - Alamos Gold Inc. (TSX:AGI; NYSE:AGI) has officially announced a binding agreement to transfer its non-core Quartz Mountain Gold Project, located in Lake County, Oregon, to Q-Gold Resources Ltd. (TSXV:QGR) for potential returns estimated up to $21 million and a 9.9% equity share in Q-Gold. This strategic move is a part of Alamos' commitment to optimize its asset portfolio.
Details of the Transaction
The transaction comprises multiple components, set to enhance Alamos' financial robustness:
Initial Cash and Equity Consideration
The sale includes an immediate cash payment of $2.85 million and a 9.9% equity stake in Q-Gold, marking a significant initial return upon closing.
Future Cash Payments
Further, Alamos is in line to receive up to $8.15 million in guaranteed payments structured over three years, contingent upon the successful completion of specific conditions:
- $3.15 million one year post-closing.
- $2.5 million after two years.
- $2.5 million at the three-year mark.
Milestone Payments
Alamos will also be eligible for additional milestone payments totaling $10 million, which can be made in cash or common shares, again at Alamos’ discretion. These payments will be unlocked upon achieving critical development benchmarks:
- $5 million upon completion of a feasibility study or announcement of a construction decision.
- $5 million upon obtaining the primary permits required for project initiation and operation.
Company Statements
John A. McCluskey, President and CEO, stated, “The sale of Quartz Mountain aligns with our strategy of monetizing non-core assets while focusing on high-return projects like the Phase 3+ Expansion at Island Gold.” He expressed confidence in Q-Gold’s capability, emphasizing their backing from Forbes & Manhattan: “We look forward to participating in the future success of the project as a significant shareholder.”
Next Steps and Regulatory Considerations
The transaction is anticipated to close during the second quarter of 2025, pending standard closing conditions typically associated with such transactions. Upon closure, Alamos will receive Q-Gold shares based on a 10-day volume-weighted average trading price ahead of the issuance.
About Alamos Gold
Alamos Gold Inc. is recognized as a leading intermediate gold producer with diversified operations across three key mines in North America. These include the Island Gold District and the Young-Davidson mine in northern Ontario, Canada, coupled with the Mulatos District in Sonora, Mexico. The Company’s growth strategy encompasses a robust portfolio of development projects, including the Phase 3+ Expansion at the Island Gold mine and the Lynn Lake project in Manitoba. Employing over 2,400 staff, Alamos is devoted to sustainable development standards in their gold mining operations. The Company’s shares are publicly traded on the TSX and NYSE under the symbol 'AGI'.
For Further Information, Please Contact:
Scott K. Parsons
Senior Vice President, Corporate Development & Investor Relations
(416) 368-9932 x 5439
Khalid Elhaj
Vice President, Business Development & Investor Relations
(416) 368-9932 x 5427
ir@alamosgold.com
Frequently Asked Questions
1. What is the total consideration for the Quartz Mountain Project?
The total consideration for the Quartz Mountain Project is up to $21 million along with a 9.9% equity interest in Q-Gold Resources.
2. When is the transaction expected to close?
The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions.
3. What are the future payments associated with this transaction?
Future payments include $8.15 million in guaranteed cash payments and $10 million in potential milestone payments based on achieving specific development targets.
4. How does this sale align with Alamos Gold's strategy?
This sale is part of Alamos' strategy to optimize its asset portfolio by monetizing non-core assets while focusing on high-return growth projects.
5. Who will benefit from the sale of Quartz Mountain?
Both Alamos Gold and Q-Gold Resources are expected to benefit from the transaction, as Alamos divests a non-core asset and gains shareholder equity in a promising development project.
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