Alio Gold Completes Sale of San Francisco Mine

(all in US$ unless otherwise noted)

VANCOUVER, British Columbia, May 06, 2020 (GLOBE NEWSWIRE) -- Alio Gold Inc. (TSX, NYSE AMERICAN: ALO) (“Alio Gold” or the “Company”), has completed the previously announced sale of the San Francisco Mine to Magna Gold Corp. (“Magna”). Under the terms of the agreement a subsidiary of Alio Gold, Timmins GoldCorp Mexico S.A. de C.V. (“Timmins”), a company organized under the laws of Mexico, has received 9,740,000 common shares (the “Consideration Shares”) of Magna and will receive $5 million in cash (or a 1% NSR royalty in respect of the San Francisco Mine, if the cash payment is not made by Magna) within twelve months. 

Prior to this transaction, Alio Gold and its subsidiaries did not own or control, directly or indirectly, any common shares of Magna (“Common Shares”) or securities convertible into Common Shares.  Immediately following the acquisition of the Consideration Shares, and after giving effect to the completion of the concurrent financing by Magna, Alio Gold, through Timmins, owned and controlled 9,740,000 Common Shares, representing approximately 17.48% of the current issued and outstanding Magna Common Shares on a non-diluted basis.

Alio Gold, through Timmins, acquired the Consideration Shares for investment purposes and as partial consideration for the sale by the Company of the San Francisco Mine. The Company may, through Timmins or otherwise, from time to time acquire additional securities, dispose of some or all of the existing or additional securities or may continue to hold the securities of Magna.

Magna’s head office is located at 18 King St E, Suite 902, Toronto, Ontario, M5C 1C4. Timmins’ head office is located at Suite 507, 700 West Pender Street, Vancouver, BC V6C 1G8.

To obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see Magna’s profile on the SEDAR website: www.sedar.com.

In addition, the Company hereby notifies shareholders, in accordance with the requirements of the NYSE MKT LLC, that the Company’s audited financial statements for the year ended December 31, 2019 are available on the Company’s website at www.aliogold.com. Shareholders may also request a hard copy of the complete audited financial statements free of charge by emailing [e-mail]. The Company’s annual report on Form 20-F has been filed with the Securities and Exchange Commission and is available at www.sec.gov and also at www.aliogold.com.