Alamos Gold Inc.

Alamos Gold Inc.

December 09, 2009 09:02 ET

Alamos Gold Inc. Signs Agreement for the Purchase of Agi Dagi and Kirazli Gold Projects in Northwestern Turkey

TORONTO, ONTARIO--(Marketwire - Dec. 9, 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 signed a definitive share purchase agreement providing for Alamos to acquire 100% of the Aği Daği and Kirazli gold projects through the purchase of certain Turkish subsidiaries held by Teck and Fronteer respectively. This agreement replaces the memorandum of understanding signed by the parties on September 22, 2009.

The transaction is subject to satisfaction of certain conditions precedent and is anticipated to close as early as December 17, 2009 and no later than January 31, 2010. Under the terms of the agreement, Alamos is to pay a total of US$40 million cash plus issue an aggregate of 4 million Alamos common shares on closing to Teck (as to 60%) and Fronteer (as to 40%) in total consideration for acquiring these two projects. The common shares will be issued on a private placement basis and will be subject to a four month hold period.

Aği Daği 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. 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 Aği Daği project.

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 $170 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.

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