Minera Alamos Inc. (TSX-V: MAI) is pleased to report that following shareholder approval of the previously announced Santana project funding package provided by Osisko Gold Royalties (see news release dated December 6th, 2019), the Company has closed the royalty agreement and received gross proceeds of C$5,000,000. In combination with the C$6,000,000 equity placement completed by Osisko in January of this year, the Company, has now received gross proceeds of C$11,000,000 and retains an option to further drawdown an optional royalty facility of up to C$3,000,000 as previously described in the December 6th, 2019 news release referenced above. Overall, the package provided access to C$14,000,000 which exceeded the Company’s current development plans for the Santana operations.
Doug Ramshaw, President, stated, “The strength of our partnership with Osisko has never been more clearly demonstrated than by their continued financial support during the current global uncertainty in equity markets. We remain fortunate we can access their financial and technical resources that allow us to remain on track to transition to gold producer in late 2020. Currently, our current working capital remains sufficient to execute our previously announced construction plans at Santana.”
As of March 30th, 2020, the Company has total cash of C$13.6 million and working capital of C$14.6 million with a further C$3 million available should Minera elect to drawdown the optional royalty facility.
About Minera Alamos Inc.:
Minera Alamos is a gold development company poised to join the ranks of gold producers in 2020. The Company has a portfolio of high-quality Mexican assets, including the 100%-owned Santana open-pit, heap-leach development project in Sonora currently under construction, which is expected to have its first gold production in late 2020 or early 2021. The La Fortuna open pit gold project in Durango (100%-owned) has an extremely robust and positive preliminary economic assessment completed and is nearing the end of the permitting process. A construction decision on La Fortuna could be made in late 2020 or early 2021 and highlights the organic growth the existing projects can provide to the overall production profile. Minera Alamos is built around its operating team that together brought 3 mines into production over the last 12 years.
The Company’s strategy is to develop low capex assets while expanding the project resources and pursue complementary strategic acquisitions.
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We acknowledge the [financial] support of the Government of Canada.