Minera Alamos Increases Bought Deal Private Placement of Common Shares to C$13.0 Million

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO and VANCOUVER, British Columbia, Aug. 18, 2020 (GLOBE NEWSWIRE) -- Minera Alamos Inc. (“Minera Alamos” or the “Company”) (TSX V:MAI) is pleased to announce that due to strong investor demand it has agreed with National Bank Financial Inc. (“NBF”), the Company’s sole underwriter, to increase the size of its previously announced bought deal private placement of common shares (“Common Shares”) of the Company (the “Offering”).

Under the amended terms of the Offering, NBF has agreed to purchase, on a "bought deal” private placement basis, 20,635,000 Common Shares at a price of C$0.63 (the “Offering Price”) for aggregate gross proceeds to the Company of approximately C$13.0 million. The Company has also granted NBF an option exercisable at any time prior to the closing of the Offering, to purchase for placement up to an additional 3,175,000 Common Shares at the Offering Price, for additional gross proceeds of up to approximately C$2.0 million.

The Company intends to use the net proceeds of the Offering to advance construction of its 100%-owned Santana gold development project located in Sonora, Mexico; further exploration activities at its other 100%-owned development projects located in Mexico, and; general corporate purposes.

The Offering is scheduled to close on or about September 3, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.

The Common Shares to be issued under the Offering will have a hold period of four months and one day from closing.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.