Alamos Gold Inc. (TSX: AGI) (NYSE: AGI) and Argonaut Gold Inc. (TSX: AR) have agreed to a merger which will give Alamos Argonaut’s Magino mine, and create one of the largest and lowest cost gold mines in Canada.
The Magino mine is located close to Alamos Island Gold mine in Ontario, Canada. Announced on Wednesday, Alamos anticipates being able to unlock value with both immediate and long-term economic benefits approximating USD$515 million.
Adding Magino is expected to increase Alamos’ combined gold production to over 600,000 ounces per year, with longer-term production potential exceeding 900,000 ounces per year. Furthermore, this combination also positions Alamos as an intermediate producer, with growing production and declining costs.
Argonaut will also spin out its assets in the United States and Mexico as a newly created junior gold producer. This includes the Florida Canyon mine in the United States, as well as the El…
