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Alamos Gold completes acquisition of Argonaut Gold
Both companies have active mines near Dubreuilville.
Argonaut’s assets in the United States and Mexico have been spun out as a newly created junior gold producer, Florida Canyon Gold.
Shareholders of Argonaut receive 0.0185 of a Class A common share of Alamos and 0.1 of a common share of Florida Canyon Gold in exchange for each outstanding common share of Argonaut, according to a release.
“Through our acquisition of Argonaut, we have further enhanced our unique positioning as a Canadian focused, intermediate gold producer, with growing production and declining costs,” said John McCluskey, president and chief executive officer of Alamos.
Insight into the acquisition
The acquisition of Argonaut Gold by Alamos Gold not only broadens Alamos’ assets but also strengthens its position as a leading Canadian gold producer. This strategic move allows Alamos to expand its footprint in the industry and optimize production efficiency.
Argonaut Gold (TSX: AGI) closed at 51 cents on Friday. The company’s shares have ranged from 22 cents to 77 cents during the last 52 weeks. Alamos Gold (TSX: AGI) closed at $24.02. Shares have ranged from $14.80 to $24.08 during the last year.
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