Canadian-based gold producer, Alamos Gold, announced this week their friendly acquisition of Richmond Mines Inc.
In the transaction, Alamos will acquire underground gold mine, Island Gold, based in Wawa, Ontario. Alamos stated that this will result in “superior production growth and cost profile”.
“Our combination with Richmond reflects our core strategy of creating long term value through operating high quality assets. The Island Gold Mine is a high quality asset in every respect. We see excellent potential for reserve and production growth from one of the highest grade, lowest cost gold mines in Canada. With this production base, growth, and balance sheet strength, Alamos will be the leading intermediate producer and presents a compelling revaluation opportunity for both Alamos and Richmond shareholders.”
– John McCluskey, President and CEO of Alamos
In a statement released by Alamos Gold, the development will result in an expected gold production of over 500,000 this year in Canadian and Mexican operations.