Wedoany.com Report-Sept. 17, Alamos Gold, a Canada-based gold producer, has reached an agreement to sell its development projects in Turkey to the local mining company Tümad Madencilik Sanayi ve Ticaret for $470 million (C$646.93 million). The deal involves the transfer of Alamos' wholly owned Turkish subsidiary, Doğu Biga Madencilik Sanayi ve Tic., which oversees the Kirazlı, Ağı Dağı, and Çamyurt gold mining projects located in north-western Turkey.

Alamos will use the proceeds to advance its Lynn Lake and Puerto Del Aire projects.

As part of the agreement, Alamos Gold will receive $160 million upon closing, with an additional $160 million one year later, and a final $150 million two years after the transaction's completion. The payments are secured by bank guarantees from internationally rated financial institutions, ensuring full payment within the stipulated two years.

Alamos plans to use the proceeds from the sale to further its growth projects, such as the expansion of its Lynn Lake project in Canada and the Puerto Del Aire project in Mexico. The funds will also help reduce the company’s existing debt. The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals in Turkey and other standard closing conditions.

John McCluskey, Alamos Gold’s President and CEO, commented: “This transaction marks a positive outcome, allowing us to crystallize significant value for our Turkish assets and utilize the proceeds to support the development of our portfolio of other high-return growth projects. These projects are all located in North America, they are all lower cost, and they underpin one of the strongest growth profiles in our sector.”

Alamos Gold operates three mines in North America: the Island Gold District and Young-Davidson mines in Ontario, and the Mulatos District in Mexico. The company employs more than 2,400 people and is listed on the Toronto and New York Stock Exchanges.

In addition, last March, Alamos Gold agreed to acquire Argonaut Gold’s shares for $325 million, consolidating its operations in Ontario. This deal included the Magino mine, which is located next to Alamos’ Island Gold mine. This strategic acquisition further enhances Alamos' position in the North American gold mining sector.