
Alamos Gold Inc. (TSX:AGI) (NYSE:AGI) announced that its wholly owned Netherlands subsidiaries, Alamos Gold Holdings Coöperatief U.A. and Alamos Gold Holdings B.V. have entered into a definitive agreement to sell Doğu Biga Madencilik Sanayi ve Tic. A.Ş., their wholly owned Turkish subsidiary, which owns the Kirazlı, Ağı Dağı and Çamyurt projects located in northwestern Türkiye, to Tümad Madencilik Sanayi ve Ticaret A.Ş a mining company operating in the Republic of Türkiye, for total cash consideration of $470 million. The Purchase Price is payable by Tümad to Alamos as follows:
Each of the Second and Third Installment payments is secured by a bank guarantee provided by international financial institutions with investment grade ratings, ensuring total guaranteed proceeds to Alamos of $470 million within two years of closing of the Transaction.
“This transaction marks a positive outcome, allowing us to crystalize significant value for our Turkish assets, and utilize the proceeds to support the development of our portfolio of other high-return growth projects. These projects are all located in North America, they are all lower cost, and they underpin one of the strongest growth profiles in our sector,” said John A. McCluskey, President and Chief Executive Officer of Alamos.
In addition to supporting the development of its pipeline of growth projects, including the Phase 3+ Expansion within the Island Gold District, the Lynn Lake Project, and the Puerto Del Aire project in Mexico, Alamos expects to use the proceeds from the Transaction to reduce existing debt obligations.
The Transaction is expected to close in the fourth quarter of 2025 and is subject to customary closing conditions for a transaction of this nature, and receipt of regulatory approval in Türkiye.
In conjunction with the Transaction, the Netherlands Subsidiaries and the Republic of Türkiye have agreed that arbitration proceedings brought by the Netherlands Subsidiaries against the Republic of Türkiye under the Netherlands-Türkiye Bilateral Investment Treaty shall remain suspended, and will be discontinued with prejudice after certain contractual milestones are reached. The arbitration proceedings remain confidential, and therefore at this stage it is not possible to disclose further details concerning those proceedings.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America. This includes the Island Gold District and Young-Davidson mine in northern Ontario, Canada, and the Mulatos District in Sonora State, Mexico. Additionally, the Company has a strong portfolio of growth 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.
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