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BRIEF-Alamos Gold announces acquisition of Richmont Mines

Published 2017-09-11, 07:43 a/m
© Reuters.  BRIEF-Alamos Gold announces acquisition of Richmont Mines
RIC
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Sept 11 (Reuters) - Richmont Mines Inc RIC.TO :

* Alamos Gold announces friendly acquisition of richmont mines

* Richmont mines inc - exchange ratio as per terms of deal implies consideration of C$14.20 per Richmont common share

* Richmont mines - upon completion of deal, existing Alamos, Richmont shareholders will own approximately 77% and 23% of pro forma company, respectively

* Richmont mines inc - under terms of agreement, all of Richmont shares to be exchanged on basis of 1.385 Alamos common shares for each Richmont share

* Richmont- island gold provides immediate cash flow accretion, stronger operating cash flow to support internal growth initiatives of pro forma co

* Richmont mines -delivers immediate earnings,cash flow accretion while providing stronger operating and free cash flow generation to alamos shareholders

* Richmont mines - deal implies total equity value of about us$770 million on a fully diluted in-the-money basis and an enterprise value of US$683 million

* Richmont mines inc - directors and senior officers of Richmont and Alamos have entered into voting support agreements

* Richmont Mines Inc - pursuant to voting support agreements, officers and directors of Richmont, Alamos to vote their shares held in favour of deal

* Richmont mines-reciprocal break fee payable of C$35 million, a reciprocal expense reimbursement fee payable by one co to other co in some circumstances

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