Alamos Gold Announces Additional Investment in Manitou Gold Inc.
April 09 2021 - 4:30PM
Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today announced the
purchase of 15,900,000 common shares (the “Shares") of Manitou Gold
Inc. ("Manitou"), representing approximately 2.5% of the
outstanding common shares of Manitou (the “Transaction”), on a
partially diluted basis. The Shares are being acquired by Alamos by
way of share purchase agreement with a third party at a price of
C$0.08 per Share.
Prior to the closing of the Transaction, the Company had
beneficial ownership of, or control and direction over 42,311,077
common shares and 4,520,000 warrants of Manitou, or 17.44% of its
issued and outstanding common shares on a partially diluted basis
(assuming exercise of the warrants).
Assuming exercise of the warrants, the Company will have the
beneficial ownership of, or control and direction over 62,731,077
common shares or 19.96% of the issued and outstanding shares of
Manitou, on a partially diluted basis, calculated as of the date of
the Transaction. The Company does not own any other securities of
Manitou.
Alamos carried out the Transaction for investment purposes and
may increase or decrease its investment based on market conditions.
Alamos and Manitou entered into an Investor Rights Agreement on
December 24, 2019, which provides Alamos with (i) the right to
nominate one director to Manitou’s board of directors, (ii)
non-dilution rights, such that Alamos can retain its pro-rata
ownership in Manitou by participating in any subsequent share
issuance, so long as Alamos retains at least 10% ownership of
Manitou’s common shares outstanding on a partially diluted basis,
and (iii) the right to participate in a joint Exploration Committee
which has been established to discuss and advise on exploration
strategy for Manitou’s Goudreau Project. On June 30, 2020, Peter
MacPhail, Chief Operating Officer of Alamos was elected as a
Director of Manitou.
The Early Warning Report, as required under National Instrument
62-103, contains additional information with respect to the
foregoing matters and will be filed by the Company on Manitou’s
SEDAR profile at www.sedar.com. The Transaction remains
subject to customary approvals, including the Toronto Stock
Exchange.
About Alamos
Alamos is a Canadian-based intermediate gold producer with
diversified production from three operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern
Ontario, Canada and the Mulatos mine in Sonora State, Mexico.
Additionally, the Company has a significant portfolio of
development stage projects in Canada, Mexico, Turkey, and the
United States. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION (INCLUDING TO OBTAIN A COPY OF THE EARLY
WARNING REPORT REFERENCED HEREIN) PLEASE CONTACT:
Scott K. Parsons Vice President, Investor
Relations (416) 368-9932 x 5439
Cautionary Note
All amounts are in United States dollars, unless otherwise
stated.
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release. 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 are forward-looking statements that involve various
risks and uncertainties. These forward-looking statements are based
on forecasts and reasonable assumptions of management. Readers are
asked to review the "Risk Factors" set out in Alamos Gold Inc.'s
Annual Information Forms and other filings available on SEDAR and
EDGAR. 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.
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