05:17:45 EDT Thu 23 May 2024
Enter Symbol
or Name
USA
CA



Argonaut Gold Inc
Symbol AR
Shares Issued 1,090,640,201
Close 2024-03-27 C$ 0.395
Market Cap C$ 430,802,879
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Globe says Alamos Gold to buy Argonaut Gold

2024-03-28 07:41 ET - In the News

See In the News (C-AGI) Alamos Gold Inc

The Globe and Mail reports in its Thursday, March 28, edition that Alamos Gold plans to buy Argonaut Gold. The Globe's Niall McGee writes that the acquisition is aimed at reviving the struggling Magino mine in Northern Ontario. Alamos has signed a friendly agreement to acquire Argonaut in an all-stock transaction worth about $325-million (U.S.) or 40 U.S. cents per share. Argonaut investors are set to receive 0.0185 of an Alamos common share, and one share of a spin-out company that will hold Argonaut's U.S. and Mexican operations. Alamos is paying a 34-per-cent premium based on Argonaut's closing share price Tuesday on the Toronto Stock Exchange. Alamos's main motivation for buying its competitor is to combine its own Island Gold operation in Northern Ontario with Argonaut's Magino mine. The two deposits are located right next to each other. By combining them, Alamos says it hopes to realize $515-million (U.S.) in cost savings over time by sharing mill and tailings operations. Magino is located 40 kilometres northeast of Wawa, Ont. Argonaut has experienced multiple operational setbacks since starting production late last year at Magino, which sent its shares into a tailspin.

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