Alamos Gold/AuRico Gold $1.5 billion merger

Overview:

• Intermediate gold producers Alamos Gold and AuRico Gold have undertaken a $1.5 billion merger of equals.
• The deal will combine AuRico’s Young-Davidson mine in Ontario Canada and Alamos’ Mulatos mine in Sonora Mexico. 
• Under the terms of the deal, holders of Alamos shares will receive, for each share held, one share in the new company and $0.0001 in cash. Holders of AuRico shares will receive, for each share held, 0.5046 shares in the new company. In addition Alamos will subscribe for approximately 27.9 million common shares of AuRico on a private placement basis.
• Also, a new spin out company will be created to hold AuRico’s Kermess project.
• Torys (Kevin Morris, Huw Evans, Mile Kurta, Melissa Prado, Braden Jebson, Jason Zhou, Sean Adair, John Emanoilidis) advised Alamos Gold as Canada and US counsel alongside Baker & McKenzie as Mexico counsel.
• Fasken Martineau (John Turner, Krisztian Toth, Richard Steinberg, Johanna Fipke, Alex Nikolic, Jessica Catton, Steven Catania, Myroslav Chwaluk, Jesse Bertollo, David Steinhauer) advised AuRico Gold alongside Paul Weiss as US counsel (Christopher Cummings, Ian Hazlitt).

Kurt Stumpo - Journalist - North America and the Caribbean