Alamos Gold Sells Turkish Assets for $470 Million
All amounts are in US dollars unless otherwise stated. Alamos Gold Inc. (TSX: AGI; NYSE: AGI) has announced a significant transaction involving the sale of its Turkish development projects. This sale includes the Kirazl?, A?? Da??, and Çamyurt projects located in northwestern Türkiye, sold to Tümad Madencilik Sanayi ve Ticaret A.? for a total cash consideration of $470 million.
Details of the Transaction
The transaction is structured to provide Alamos with a phased payment arrangement. Tümad will pay $160 million upon the closing of the deal, followed by $160 million one year post-closure, and the final installment of $150 million two years after closing. Each payment in the second and third installments is secured by bank guarantees from international financial institutions, ensuring that Alamos will receive the full $470 million within two years.
Leadership Insights
John A. McCluskey, President and CEO of Alamos Gold, emphasized the positive impact of this transaction. "This strategic move allows us to realize significant value from our Turkish assets while reallocating resources to our other high-return projects in North America. These projects are lower cost and are vital to our growth profile in the sector," he stated.
Focus on Growth Projects
Alongside the cash inflow, Alamos intends to utilize the proceeds from this transaction for developing its pipeline, which includes the Phase 3+ Expansion in the Island Gold District, Lynn Lake Project, and Puerto Del Aire project in Mexico. Moreover, reducing existing debt obligations will also form a crucial part of their financial strategy.
Regulatory and Closing Details
The transaction is expected to finalize in the fourth quarter of 2025. It is subject to customary closing conditions typical for transactions of this nature and requires regulatory approval to proceed in Türkiye. Alamos Gold's Netherlands subsidiaries and the Republic of Türkiye have mutually consented to suspend arbitration proceedings under the Netherlands-Türkiye Bilateral Investment Treaty pending certain contractual milestones.
About Alamos Gold Inc.
Alamos Gold is an experienced intermediate gold producer based in Canada, showcasing diversified production from three operations in North America. This includes the Island Gold District and Young-Davidson mine in Ontario, as well as the Mulatos District in Sonora, Mexico. The company is notably committed to sustainable development, employing over 2,400 individuals. Shares of Alamos Gold are publicly traded on the TSX and NYSE under the ticker ‘AGI’.
Contact Information
For further inquiries, reach out to Scott K. Parsons, Senior Vice President, Corporate Development & Investor Relations at (416) 368-9932 x 5439, or Khalid Elhaj, Vice President, Business Development & Investor Relations at (416) 368-9932 x 5427 or via email at ir@alamosgold.com.
Frequently Asked Questions
What is the total cash consideration for the sale?
The total cash consideration for the sale of the Turkish projects is $470 million.
Who is the buyer of Alamos Gold's Turkish assets?
The buyer of the Turkish assets is Tümad Madencilik Sanayi ve Ticaret A.?.
What will Alamos use the proceeds from the sale for?
Alamos plans to use the proceeds to support other development projects in North America and to reduce existing debt obligations.
When is the transaction expected to close?
The transaction is expected to close in the fourth quarter of 2025.
Who is the CEO of Alamos Gold Inc.?
The CEO of Alamos Gold Inc. is John A. McCluskey.
