Alamos Gold Inc.

Alamos Gold Inc.

November 23, 2009 06:00 ET

Alamos Gold Inc. Extends Agi Dagi and Kirazli Acquisition Due Diligence Period

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2009) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company"), Fronteer Development Group Inc. ("Fronteer") (TSX:FRG)(NYSE Amex:FRG) and Teck Resources Limited ("Teck")(TSX:TCK.B)(NYSE:TCK) have agreed to amend their Memorandum of Understanding ("MOU") to extend the due diligence period on the acquisition by Alamos of the 100% of the Agi Dagi and Kirazli gold projects until the close of business on December 7, 2009.

On September 22, 2009, Alamos entered into an MOU with Teck and Fronteer to acquire 100% of the Agi Dagi and Kirazli gold projects through the acquisition of certain Turkish subsidiaries held by Teck and Fronteer. Agi Dagi and Kirazli are advanced-stage gold exploration projects that form part of the Biga Mineral District, a recently established gold-copper mineral district, which is located in the Biga Peninsula of northwestern Turkey. The Biga Mineral District features a growing number of high-sulfidation epithermal gold and associated porphyry copper-gold deposits, drawing comparisons to world-class districts such as Yanacocha, Pierina, and Alto Chicama in Peru.

The original 60-day due diligence period has been extended until December 7, 2009 to provide additional time for the transmission of all information and documentation. Other terms remain unchanged.

Alamos' President and CEO, John A. McCluskey, said, "The due diligence process is going well; however we realize now that the process, including the exchange of information, will take longer than the initial 60 days initially contemplated. The acquisition is expected to add over two million oxide ounces of gold to Alamos' growing global resources and gives us a foothold in an important mineral district in a low political risk jurisdiction. We expect that the acquisition of Agi Dagi and Kirazli to contribute significantly to the Company's long-term production profile."

Alamos is to pay a total of US$40 million and issue a total of four million shares to the vendors in consideration for acquiring these two projects. In addition to statutory compensation that may apply to the projects, a third party has a 2% Net Smelter Return Royalty on production from the Agi Dagi project.

The transaction is subject to Alamos being satisfied with the results of its due diligence, the execution of definitive agreements, and the approval of Alamos' Board of Directors and the TSX. 

About Alamos

Alamos is a Canadian-based gold producer with operations, exploration, and development activities in Mexico. The Company employs over 450 people in Mexico and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities. Alamos has over $160 million dollars on hand, is debt free, and unhedged to the price of gold. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol "AGI".

Cautionary Note

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding forecast gold production, gold grades, recoveries, waste-to-ore ratios, total cash costs, potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. A mineral resource which is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Alamos' expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Alamos Gold Inc.
    John A. McCluskey
    President and Chief Executive Officer
    (416) 368-9932
    Alamos Gold Inc.
    Jeremy Link
    Manager, Investor Relations
    (416) 368-9932