Alamos Gold has announced that it has received “overwhelming” approval for its proposed acquisition of Richmont Mines.
The Canadian-based intermediate gold producer, with diversified production from three operating mines baseed in North America, has announced that shareholders of both companies have “overwhelmingly voited in favour” of the acquisition.
This will further cement Alamos’ ambition to become a leading, low cost intermediate gold producer.
"With the acquisition of Richmont we are strengthening our asset base and profitability. We are very pleased with the strong support for the transaction and expect to create significant value for shareholders as we deliver on the expansion at Island Gold and continue to unlock its exploration potential," said John A. McCluskey, President and Chief Executive Officer of Alamos.
Through the acquisition, Alamos will incorporate the Island Gold Mine, currently being developed by Richmont Mines.
Island Gold is a high-grade underground gold mine, with excellent potential to grow its estimated mineral resource, which through a 2017 drilling program currently stands at 2,551,000 metric tonnes of gold in reserves.
"This strategic transaction delivers on our commitment to create long-term sustainable value as our shareholders will benefit from having meaningful ownership in a diversified intermediate producer with a portfolio of high-quality assets and a proven and experienced management team while maintaining exposure to the significant potential of the Island Gold Mine," said Renaud Adams, President and Chief Executive Officer of Richmont.