Alamos Gold's Strategic Sale of Turkish Projects for $470M
Alamos Gold Optimizes Its Asset Portfolio with Major Sale
In a recent development, Alamos Gold Inc. has made a strategic decision to sell its Turkish subsidiary, Do?u Biga Madencilik Sanayi ve Tic. A.?., which owns three significant mining projects. The total cash consideration for this transaction stands at $470 million, allowing the company to enhance its operations back in North America.
Details of the Sale
The transaction, involving the sale to Tümad Madencilik Sanayi ve Ticaret A.?, marks a milestone for Alamos, reflecting its commitment to reallocating resources to areas with higher growth potential. The cash flow from the transaction will be structured in three installments:
Payment Structure
1. An initial payment of $160 million at the closing of the deal.
2. A second installment of $160 million due on the one-year anniversary of closing.
3. A final payment of $150 million to be made two years post-closure.
This structure is designed to minimize risk, as each installment is secured by bank guarantees from reputable financial institutions, promising Alamos a total of $470 million within two years.
Strategic Benefits for Alamos
The CEO of Alamos Gold, John A. McCluskey, expressed optimism about this transaction, noting the ability to unlock significant value from Turkish assets. He emphasized the company's focus on developing projects that promise higher returns, particularly in North America, which includes operations like the Island Gold District and projects in Manitoba and Mexico.
Future Projects and Growth
The proceeds from this sale will not only support the continued development of existing projects, including the Phase 3+ Expansion in the Island Gold District and others but will also help in reducing the company’s debt obligations. This proactive step highlights Alamos’ strategy to strengthen its financial position while fostering growth in stable regions.
Transaction Outlook
Expected to close within the fourth quarter of 2025, the transaction is pending regulatory approval. Additionally, discussions between Alamos' Netherlands subsidiaries and the Republic of Türkiye have led to a temporary suspension of arbitration proceedings related to this transaction, indicating a cooperative resolution.
About Alamos Gold
Alamos Gold Inc. is recognized as a leading gold producer with diversified operations across North America. With notable projects in Ontario and Mexico, the company boasts a solid workforce of over 2,400 individuals committed to sustainable development. Alamos trades publicly on both the TSX and NYSE under the ticker symbol AGI, reflecting its transparency and significance in the market.
Contact Information
For more details regarding this transaction or additional insights into company operations, interested parties can reach out to:
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
What is the total cash consideration for the sale?
The total cash consideration for the sale is $470 million.
Who is the buyer of Alamos Gold's Turkish projects?
The buyer is Tümad Madencilik Sanayi ve Ticaret A.?., a mining company based in Türkiye.
How will the proceeds from the sale be used?
Alamos plans to use the proceeds to support growth projects in North America and to reduce existing debt.
When is the expected closing of the transaction?
The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals.
What are some of Alamos Gold’s key projects?
Key projects include the Island Gold District, Lynn Lake Project, and Puerto Del Aire project in Mexico.
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