Alamos Gold closes purchase of Corex Gold shares
2016-10-21 07:39 ET - News Release
See News Release (C-AGI) Alamos Gold Inc
Mr. John McCluskey reports
ALAMOS ANNOUNCES INVESTMENT IN COREX GOLD CORP.
Alamos Gold Inc. has closed the purchase of 25.3 million common shares of Corex Gold Corp., representing approximately 19.07 per cent of the outstanding common shares of Corex. The shares are being acquired by Alamos by way of private placement at a price of 10 cents per share.
Alamos carried out the transaction for investment purposes and may increase or decrease its investment based on market conditions. Pursuant to an investor rights agreement entered into between Alamos and Corex, Corex has granted Alamos a right to participate in future financings, subject to certain terms, to maintain its pro rata interest. Corex has also granted Alamos the right to nominate up to two directors to the Corex board of directors. Alamos has elected not to exercise such right at this time but retains the right to do so in the future by giving written notice to Corex.
"With its favourable geology and proximity to the Mulatos mine, the Santana property represents an attractive exploration opportunity. We look forward to supporting Corex as they continue exploring this property," said John A. McCluskey, president and chief executive officer.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by the company on Corex's SEDAR profile. The transaction remains subject to customary approvals, including the Toronto Stock Exchange.
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson mine in Northern Ontario, Canada, and the Mulatos and El Chanate mines in Sonora state, Mexico.