Alamos buys Manitou Gold at 100% premium
Canadian mining company Alamos Gold on Tuesday announced it was buying Manitou Gold, increasing its regional land package around the Island gold mine with the addition of the Goudreau property.
This includes 40 000 ha adjacent to and along strike from the Island Gold mine, adding significant exploration potential across the relatively underexplored Michipicoten Greenstone Belt.
Under the terms of the agreement, Manitou shareholders would receive 0.003525 of an Alamos common share for each Manitou share, representing a value of C$0.05 a Manitou share, calculated based on the 20-day volume weighted average trading price of Alamos’ shares on the TSX immediately preceding February 28.
Manitou’s share price closed at C$0.025 a share on Monday.
This represents a premium of 95% based on Alamos’ and Manitou’s respective closing prices on February 27, 2023 and 88% premium to Manitou’s 20-day volume-weighted average price.
Alamos currently owns 65.2-million Manitou shares, representing about 19% of Manitou’s basic common shares outstanding. Excluding Alamos’ existing ownership of Manitou, Alamos expects to issue approximately one-million shares for total consideration of C$14-million.
“Since our acquisition of Island Gold in 2017, much of our focus has been on near-mine drilling where we have had tremendous success discovering more than four-million ounces of high-grade mineral reserves and resources. Through our acquisition of Manitou, we are more than tripling our land package along strike from Island Gold where we see excellent potential for additional high-grade discoveries across the prospective Michipicoten Greenstone Belt,” said president and CEO John McCluskey.
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