Alamos Gold Announces Acquisition of Manitou Gold More Than Tripling Land Package Adjacent to Island Gold Mine

TORONTO, Feb. 28, 2023 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) pursuant to which Alamos will acquire all of the issued and outstanding shares of Manitou Gold Inc. (TSX:MTU) (“Manitou”) by way of a court-approved plan of arrangement (the “Transaction”). The acquisition will consolidate Alamos’ existing ownership of Manitou shares and increase its regional land package around Island Gold with the addition of the Goudreau Property. This includes 40,000 hectares (“ha”) adjacent to and along strike from the Island Gold Mine, adding significant exploration potential across the relatively underexplored Michipicoten Greenstone Belt (see Figure 1). This is expected to increase Alamos’ land package around the Island Gold Deposit to 55,277 ha, a 267% increase.

The acquisition extends Alamos’ mineral tenure along strike to the east within the Goudreau Lake Deformation Zone, a primary control on gold mineralization within the Goudreau-Lochalsh segment of the Michipicoten Greenstone Belt. The expanded land package will now include the majority of the mineral tenure between the only two major mines within the belt – the Island Gold Mine and the past producing Renabie Gold Mine (aggregate production of 1.1 million ounces of gold from 1947-1991). The Goudreau Property also adds six additional belt-scale deformation zones hosting several gold occurrences, including Cradle Lake-Emily Bay, Loch Lomond, Missinaibi, Baltimore, Easy Lake and Renabie Deformation Zones.

Alamos has developed a systematic district-scale targeting and exploration approach for the area surrounding the Island Gold Mine. This approach can now be applied to the larger consolidated land package to rapidly generate and test new exploration targets.

Under the terms of the Agreement, Manitou shareholders will receive 0.003525 of an Alamos common share for each Manitou share, representing a value of C$0.05 per Manitou share, calculated based on the 20-day volume weighted average trading price of Alamos’ shares on the Toronto Stock Exchange immediately preceding February 28, 2023. This represents a premium of 95% based on Alamos’ and Manitou’s respective closing prices on February 27, 2023 and 88% premium to Manitou’s 20-day volume-weighted average price. Alamos currently owns 65.2 million Manitou shares, representing approximately 19% of Manitou’s basic common shares outstanding. Excluding Alamos’ existing ownership of Manitou, Alamos expects to issue approximately 1.0 million shares for total consideration of C$14 million.