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Canada's Alamos Gold to buy Richmont in a deal valued at C$905 mln

Published 2017-09-11, 07:29 a/m
Updated 2017-09-11, 07:30 a/m
© Reuters.  Canada's Alamos Gold to buy Richmont in a deal valued at C$905 mln

Sept 11 (Reuters) - Canada's Alamos Gold Inc AGI.TO AGI.N will buy smaller rival Richmont Mines Inc RIC.TO RIC.N in an all-stock deal valued at about C$905 million ($747 million).

Richmont will receive 1.385 per Alamos share, or C$14.20, representing a 22 percent premium to Richmont's last close. shares of Richmont were up 15.2 percent at $11.00 in premarket trading on Monday.

The deal has an enterprise value of $683 million, the companies said in a statement.

The combined company, which will have majority of its production in Canada, is expected to produce 500,000 ounces of gold in 2017.

Upon completion of the deal, which is expected by mid-November, Alamos will own 77 percent of the combined company and Richmont the rest.

BMO Capital Markets was Alamos' financial adviser, while Macquarie Capital Markets Canada Ltd and Maxit Capital LP advised Richmont. ($1 = C$1.21)

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