Aurizon Mines to evaluate unsolicited Alamos takeover bid

Vancouver-based Aurizon Mines Ltd. (TSX:ARZ) has announced a special committee to evaluate a unsolicited takeover bid from Toronto-based Alamos Gold Inc. (TSX:AGI).

Vancouver-based Aurizon Mines Ltd. (TSX:ARZ) has announced a special committee to evaluate a unsolicited takeover bid from Toronto-based Alamos Gold Inc. (TSX:AGI).

Alamos announced its bid January 14. The offer values the company at approximately $780 million in cash and shares, or $4.65 per Aurizon share.

In making the bid, Alamos president and CEO John McCluskey pitched Aurizon shareholders on its takeover plans.

"We believe the combined companies will form one of the strongest and lowest-risk production and growth profiles in the gold sector today," he said. "The offer, combining the world-class assets of the two companies, demonstrates Alamos' ability to identify and pursue opportunities that present a strong strategic fit with our goal to become an intermediate gold producer."

Aurizon announced January 18 that it has appointed Scotia Capital Inc. as financial adviser and DuMoulin Black LLP and Blake, Cassels & Graydon LLP as legal counsel to assist in responding to the bid.

According to Alamos, the offer of $4.65 per share represents a premium of approximately 40% based on Aurizon's January 9 closing share price on the Toronto Stock Exchange of $3.33.

As of press time, Aurizon stock was trading at $4.66.

jwagler@biv.com

@JennyWagler_BIV

comments powered by Disqus

Also Read

More From Mining & Energy

A controversial mining project in Tumbler Ridge would include a massive conveyor belt to transport coal underneath the Murray River, a mining executive told an ...

Read Article

City of Burnaby loses round 1 in battle over Burnaby Mountain  

Read Article

Imperial Metals said it is actively working to remediate the Mount Polley region after the tailings pond breach August 4 that caused a large field ...

Read Article

NDP blasts cut in rate from what Liberals originally proposed, but prospective LNG proponents will now be facing a tax bill that includes LNG tax, ...

Read Article

Subscribe to our mailing lists

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
×