Alamos Announces Closing of Esperanza Resources Acquisition
August 30 2013 - 6:00AM
Marketwired
All amounts are in United States dollars, unless otherwise
stated.
Alamos Gold Inc. (TSX:AGI)(NYSE:AGI) ("Alamos" or the "Company")
today reported the completion of the previously announced
acquisition (the "Acquisition") of all of the issued and
outstanding common shares of Esperanza Resources Corp.
("Esperanza"). Shareholders of Esperanza were overwhelmingly
supportive of the Acquisition, with 96.25% of the votes cast at a
special meeting of the shareholders held on August 27, 2013 being
voted in favour. A Final Order was granted by the Supreme Court of
British Columbia on August 29, 2013 approving the Plan of
Arrangement pursuant to which the Transaction was implemented.
"We are very pleased to announce the closing of the Esperanza
acquisition," said John A. McCluskey, President and Chief Executive
Officer. "We believe the Esperanza Gold Project fits the Alamos
profile perfectly, as a low capital intensity, low cost, and low
technical risk project that will augment our strong development
pipeline. While the transaction represents a small portion of our
market capitalization, we believe it has the potential to grow our
production by more than 50% in Mexico. We look forward to work on
resubmission of the Esperanza Gold Project EIA over the next 18
months and advancing it towards development."
Following completion of the Esperanza Acquisition, Alamos has
approximately $445m in cash, no debt and strong ongoing cash flow
generation. With this strong financial position, the Company
expects to fund development of Esperanza and its Turkish projects
internally.
About Alamos
Alamos is an established Canadian-based gold producer that owns
and operates the Mulatos Mine in Mexico, and has exploration and
development activities in Mexico and Turkey. The Company employs
more than 600 people and is committed to the highest standards of
environmental management, social responsibility, and health and
safety for its employees and neighbouring communities. Alamos has
approximately $445 million in cash and cash equivalents, is
debt-free, and unhedged to the price of gold. As of August 29,
2013, Alamos had 127,525,986 common shares outstanding (132,423,186
shares fully diluted), which are traded on the TSX and NYSE under
the symbol "AGI".
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein. This News Release includes certain "forward-looking
statements". All statements other than statements of historical
fact included in this release, including without limitation
statements regarding forecast gold production, gold grades,
recoveries, waste-to-ore ratios, total cash costs, potential
mineralization and reserves, exploration results, and future plans
and objectives of Alamos, are forward-looking statements that
involve various risks and uncertainties. These forward-looking
statements include, but are not limited to, statements with respect
to mining and processing of mined ore, achieving projected recovery
rates, anticipated production rates and mine life, operating
efficiencies, costs and expenditures, changes in mineral resources
and conversion of mineral resources to proven and probable
reserves, and other information that is based on forecasts of
future operational or financial results, estimates of amounts not
yet determinable and assumptions of management.
Any statements that express or involve discussions with respect
to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate",
"plans", "estimates" or "intends", or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements." Forward-looking statements
are subject to a variety of risks and uncertainties that could
cause actual events or results to differ from those reflected in
the forward-looking statements.
There can be no assurance that forward-looking statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from Alamos' expectations include, among others, risks
related to international operations, the actual results of current
exploration activities, conclusions of economic evaluations and
changes in project parameters as plans continue to be refined as
well as future prices of gold and silver, as well as those factors
discussed in the section entitled "Risk Factors" in Alamos' Annual
Information Form. Although Alamos has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements.
Note to U.S. Investors
Alamos prepares its disclosure in accordance with the
requirements of securities laws in effect in Canada, which differ
from the requirements of U.S. securities laws. Terms relating to
mineral resources in this presentation are defined in accordance
with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects under the guidelines set out in the Canadian
Institute of Mining, Metallurgy, and Petroleum Standards on Mineral
Resources and Mineral Reserves. The United States Securities and
Exchange Commission (the "SEC") permits mining companies, in their
filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce. Alamos
may use certain terms, such as "measured mineral resources",
"indicated mineral resources", "inferred mineral resources" and
"probable mineral reserves" that the SEC does not recognize (these
terms may be used in this presentation and are included in the
public filings of Alamos, which have been filed with the SEC and
the securities commissions or similar authorities in Canada).
Contacts: Alamos Gold Inc. Scott K. Parsons Manager, Investor
Relations (416) 368-9932 x 439 or Toll Free: 1 (866) 788-8801
www.alamosgold.com
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