Alamos Gold Announces the Sale of Quartz Mountain Gold Project for Total Consideration of up to $21 million and 9.9% Equity in Q-Gold Resources
Alamos Gold (TSX:AGI; NYSE:AGI) has announced the sale of its non-core Quartz Mountain Gold Project in Lake County, Oregon to Q-Gold Resources for up to $21 million plus a 9.9% equity stake in Q-Gold.
The transaction structure includes:
- $2.85 million in cash and 9.9% equity stake upon closing
- $8.15 million in Guaranteed Payments over three years
- $10 million in Milestone Payments tied to project development
The deal aligns with Alamos' strategy to monetize non-core assets while focusing on high-return growth projects including the Phase 3+ Expansion at Island Gold, Lynn Lake, and PDA. The transaction is expected to close in Q2 2025, subject to customary conditions.
Alamos Gold (TSX:AGI; NYSE:AGI) ha annunciato la vendita del suo progetto non strategico Quartz Mountain Gold Project nella contea di Lake, Oregon, a Q-Gold Resources per un massimo di 21 milioni di dollari più una partecipazione azionaria del 9,9% in Q-Gold.
La struttura della transazione include:
- 2,85 milioni di dollari in contante e 9,9% di partecipazione azionaria al momento della chiusura
- 8,15 milioni di dollari in pagamenti garantiti distribuiti su tre anni
- 10 milioni di dollari in pagamenti legati a traguardi legati allo sviluppo del progetto
Questo accordo si allinea con la strategia di Alamos di monetizzare asset non strategici mentre si concentra su progetti di crescita ad alto rendimento, inclusa l'espansione Fase 3+ presso Island Gold, Lynn Lake e PDA. La transazione dovrebbe chiudersi nel secondo trimestre del 2025, soggetta a condizioni consuete.
Alamos Gold (TSX:AGI; NYSE:AGI) ha anunciado la venta de su proyecto no central Quartz Mountain Gold Project en el condado de Lake, Oregón, a Q-Gold Resources por un máximo de 21 millones de dólares más una participación accionaria del 9,9% en Q-Gold.
La estructura de la transacción incluye:
- 2,85 millones de dólares en efectivo y 9,9% de participación accionaria al cierre
- 8,15 millones de dólares en pagos garantizados durante tres años
- 10 millones de dólares en pagos por hitos vinculados al desarrollo del proyecto
El acuerdo se alinea con la estrategia de Alamos de monetizar activos no centrales mientras se enfoca en proyectos de crecimiento de alto rendimiento, incluyendo la expansión Fase 3+ en Island Gold, Lynn Lake y PDA. Se espera que la transacción se cierre en el segundo trimestre de 2025, sujeta a condiciones habituales.
Alamos Gold (TSX:AGI; NYSE:AGI)는 오리건주 레이크 카운티에 위치한 비핵심 Quartz Mountain Gold Project를 Q-Gold Resources에 최대 2100만 달러에 판매한다고 발표했습니다. 또한 Q-Gold의 9.9%의 지분도 포함됩니다.
거래 구조는 다음과 같습니다:
- 종결 시 285만 달러의 현금과 9.9%의 지분
- 3년에 걸쳐 보장된 지급금 815만 달러
- 프로젝트 개발에 연계된 이정표 지급금 1000만 달러
이번 거래는 Alamos가 비핵심 자산을 수익화하고 Island Gold, Lynn Lake 및 PDA에서의 고수익 성장 프로젝트에 집중하는 전략과 일치합니다. 거래는 2025년 2분기에 종료될 것으로 예상되며, 일반적인 조건에 따릅니다.
Alamos Gold (TSX:AGI; NYSE:AGI) a annoncé la vente de son projet non stratégique Quartz Mountain Gold Project dans le comté de Lake, Oregon, à Q-Gold Resources pour un montant pouvant atteindre 21 millions de dollars ainsi qu'une participation de 9,9% dans Q-Gold.
La structure de la transaction comprend:
- 2,85 millions de dollars en espèces et 9,9% de participation au moment de la clôture
- 8,15 millions de dollars en paiements garantis sur trois ans
- 10 millions de dollars en paiements d'étape liés au développement du projet
Cette opération s'inscrit dans la stratégie d'Alamos de monétiser des actifs non stratégiques tout en se concentrant sur des projets de croissance à fort rendement, y compris l'expansion Phase 3+ à Island Gold, Lynn Lake et PDA. La transaction devrait être finalisée au deuxième trimestre de 2025, sous réserve des conditions habituelles.
Alamos Gold (TSX:AGI; NYSE:AGI) hat den Verkauf seines nicht zum Kerngeschäft gehörenden Quartz Mountain Gold Project im Lake County, Oregon, an Q-Gold Resources für bis zu 21 Millionen Dollar sowie einen 9,9%igen Eigenkapitalanteil an Q-Gold bekannt gegeben.
Die Struktur der Transaktion umfasst:
- 2,85 Millionen Dollar in bar und 9,9% Eigenkapitalanteil bei Abschluss
- 8,15 Millionen Dollar an garantierten Zahlungen über drei Jahre
- 10 Millionen Dollar an Meilensteinzahlungen, die an die Projektentwicklung gebunden sind
Der Deal steht im Einklang mit der Strategie von Alamos, nicht zum Kerngeschäft gehörende Vermögenswerte zu monetarisieren, während man sich auf wachstumsstarke Projekte konzentriert, darunter die Phase 3+ Erweiterung bei Island Gold, Lynn Lake und PDA. Die Transaktion soll im 2. Quartal 2025 abgeschlossen werden, vorbehaltlich üblicher Bedingungen.
- Immediate cash inflow of $2.85M plus equity stake upon closing
- Additional guaranteed payments of $8.15M over three years
- Potential for $10M in milestone payments
- Maintains exposure to project upside through 9.9% equity stake
- Aligns with strategy to monetize non-core assets
- Milestone payments of $10M are contingent on project development success
- Future payments may be received in shares instead of cash at Alamos' election
Insights
Alamos Gold's sale of the Quartz Mountain project represents a strategic portfolio optimization move that allows the company to monetize a non-core asset while retaining upside exposure. The
The transaction structure is particularly noteworthy. Only
While the transaction size is modest relative to Alamos's
The equity component creates an interesting alignment of interests. If Q-Gold successfully advances Quartz Mountain, Alamos benefits both from milestone payments and equity appreciation. The mention of Forbes & Manhattan backing for Q-Gold suggests the junior company may have access to the capital and expertise needed to advance the project effectively.
All amounts are in United States dollars, unless otherwise stated.
TORONTO, April 03, 2025 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) announced today that it has entered into a binding agreement to sell its non-core Quartz Mountain Gold Project (“Quartz Mountain”) located in Lake County, Oregon to Q-Gold Resources Ltd. (TSXV:QGR) (“Q-Gold”) for total consideration of up to
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“The sale of Quartz Mountain is consistent with our strategy of monetizing non-core assets as we develop our portfolio of high-return growth projects including the Phase 3+ Expansion at Island Gold, Lynn Lake, and PDA,” said John A. McCluskey, President and Chief Executive Officer.
“As a Forbes & Manhattan backed company, Q-Gold is well positioned to advance Quartz Mountain and we look forward to participating in the future success of the project as a significant shareholder,” Mr. McCluskey added.
The Q-Gold common shares to be issued to Alamos upon closing of the Transaction, or at a later date, are to be based on a 10-day volume weighted average trading price prior to the date of issuance. Torys LLP is acting as legal advisor to Alamos.
The Transaction is expected to close in the second quarter of 2025 and is subject to customary closing conditions for a transaction of this nature.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Island Gold District and the Young-Davidson mine in northern Ontario, Canada, and the Mulatos District in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 2,400 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Senior Vice President, Corporate Development & Investor Relations
(416) 368-9932 x 5439
Khalid Elhaj
Vice President, Business Development & Investor Relations
(416) 368-9932 x 5427
ir@alamosgold.com
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note regarding Forward-Looking Statements
This news release contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S. securities laws. All statements in this news release other than statements of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are, or may be deemed to be, forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expect", “anticipate”, assume”, "plan", “future”, "estimate", “prospective” or “potential” or variations of such words and phrases and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved or the negative connotation of such terms. Forward-looking statements contained in this news release are based on expectations, estimates and projections as at the date of this news release.
Forward-looking statements in this news release include, without limitation, information and expectations as to strategy, plans, future financial and operating performance regarding: closing of the Transaction and expected timing of the closing; total quantum of consideration payable to Alamos for the Transaction; Q-Gold being well positioned to advance the Quartz Mountain Project; anticipated future success of the Quartz Mountain Project; and the nature of the Phase 3+ Expansion at Island Gold and the Lynn Lake and PDA projects as high-return growth projects.
Alamos cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information.
These factors and assumptions include, but are not limited to: failure by either party to meet requisite closing conditions for the Transaction; actions required to trigger Milestone Payments not being implemented or coming to fruition; changes within Q-Gold, or issues with respect to permitting and/or construction causing non-advancement of the Quartz Mountain project; the actual results of current exploration activities; conclusions of economic and geological evaluations; changes in project parameters as plans continue to be refined; operations may be exposed to serious illness, disease, epidemics and/or pandemics, any regulatory responses to same, and any of their associated impacts on the broader market; changes in national and local government legislation, controls or regulations; failure to comply with environmental and health and safety laws and regulations; labour and contractor availability (and being able to secure the same on favourable terms); ability to sell or deliver gold doré bars; disruptions in the maintenance or provision of required infrastructure and information technology systems; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance); changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar, Mexican peso and Turkish Lira); the impact of inflation, the implementation of tariffs, trade barriers and/or regulatory costs; employee and community relations; litigation and administrative proceedings; disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; risks associated with the start-up of new mines; delays with the Phase 3+ Expansion Project at the Island Gold mine; delays in the development or updating of mine plans; delays in the construction of the Lynn Lake Project or the Puerto Del Aire Project; changes that may be required to the intended method of accessing and mining the deposit at Puerto Del Aire and Lynn Lake projects; inherent risks and hazards associated with mining and mineral processing including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; the risk that the Company’s mines may not perform as planned; uncertainty with the Company's ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development; risks in obtaining and maintaining necessary licenses, permits and authorizations for the Company’s development stage and operating assets; risk that required amendments to existing permits for the Lynn Lake project to accommodate the Burnt Timber and Linkwood deposits may not be obtained; contests over title to properties; expropriation or nationalization of property; political or economic developments in Canada, Mexico, the United States, Türkiye and other jurisdictions in which the Company may carry on business in the future; increased costs and risks related to the potential impact of climate change; the costs and timing of construction and development of new deposits; effects of construction decisions, risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; and business opportunities that may be pursued by the Company.
For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see the Company’s latest 40-F/Annual Information Form and Management’s Discussion and Analysis, each under the heading “Risk Factors”, available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information and risk factors and assumptions found in this news release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether written or oral, or whether as a result of new information, future events or otherwise, except as required by applicable law.
