Alamos Gold To Buy Richmont Mines For Equity Value Of $770 Mln - Quick Facts

(RTTNews) - Alamos Gold Inc. (AGI.TO, AGI) announced Monday that it has agreed to acquire Richmont Mines Inc. (RIC.TO, RIC). The deal implies a total equity value of approximately $770 million on a fully diluted in-the-money basis and an enterprise value of $683 million.

Under the deal terms, all Richmont shares will be exchanged on the basis of 1.385 Alamos common shares for each Richmont common share. The Exchange Ratio implies consideration of C$14.20 per Richmont common share, based on the closing price of Alamos shares on September 8.

This represents a 22% premium to Richmont's closing price and a 32% premium based on both companies' 20-day volume-weighted average prices, both as at September 8 on the TSX.

Upon completion of the transaction, existing Alamos and Richmont shareholders will own approximately 77% and 23% of the pro forma company, respectively.

Separately, Richmont Mines announced that it has entered into a definitive agreement to sell Beaufor Mine, the Camflo Mill and the Wasamac development project located in Quebec to Monarques Gold Corp. (MQR.V).

The sale of the Quebec Assets is the culmination of a strategic review process that Richmont publicly disclosed in first quarter. The sale is expected to close on, or about, September 29, 2017 and is not a condition to the Alamos deal.