Alamos Gold to sell Turkish development projects for $470M in cash

Alamos Gold (AGI) announced that its wholly owned Netherlands subsidiaries have entered into a definitive agreement to sell Dou Biga Madencilik Sanayi, their wholly owned Turkish subsidiary, which owns the Kirazl, A Da and Camyurt projects located in northwestern Turkiye, to Tumad Madencilik Sanayi, a mining company operating in the Republic of Turkiye, for total cash consideration of $470M. The purchase price is payable by Tumad to Alamos as follows: $160M payable upon closing of the transaction; $160M payable on the one-year anniversary of the closing of the transaction and $150M payable on the two-year anniversary of the closing of the transaction. 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 $470M within two years of closing of the transaction. 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 Turkiye. In conjunction with the transaction, the Netherlands subsidiaries and the Republic of Turkiye have agreed that arbitration proceedings brought by the Netherlands Subsidiaries against the Republic of Turkiye under the Netherlands-Turkiye 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.