Richmont Mines Sold for $770 Million

Alamos Gold to acquire Richmont Mines in deal with equity value of $770M

Alamos Gold to acquire Richmont Mines in deal with equity value of $770M. See for details

Alamos Gold (AGI) and Richmont Mines (RIC) are announced that they have entered into a definitive agreement whereby Alamos will acquire all of the issued and outstanding shares of Richmont pursuant to a plan of arrangement, further enhancing Alamos’ position as a leading intermediate gold producer.

Under the terms of the Agreement, all of the Richmont issued and outstanding common shares will be exchanged on the basis of 1.385 Alamos common shares for each Richmont common share.

The Exchange Ratio implies consideration of C$14.20 per Richmont common share, based on the closing price of Alamos common shares on the Toronto Stock Exchange on September 8.

This represents a 22% premium to Richmont’s closing price and a 32% premium based on both companies’ 20-day volume-weighted average prices, both as at September 8 on the TSX.

This implies a total equity value of approximately $770M on a fully diluted in-the-money basis and an enterprise value of $683M.

Upon completion of the Transaction, existing Alamos and Richmont shareholders will own approximately 77% and 23% of the pro forma company, respectively.

Concurrent with the announcement of the Transaction, Richmont announced the sale of the Beaufor Mine, the Camflo Mill and the Wasamac development project located in Quebec. Further details regarding the sale of the Quebec Assets can be found in the Richmont press release dated September 11.

The sale of the Quebec Assets is the culmination of a strategic review process that Richmont publicly disclosed in Q1. The sale is expected to close on, or about, September 29 and is not a condition to the Transaction.

The Agreement has been unanimously approved by the boards of Alamos and Richmont, and each board recommends that their respective shareholders vote in favor of the Transaction.


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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