Orford Mining Corporation (TSXV: ORM) has proudly announced a definitive agreement whereby Alamos Gold Inc. (TSX: AGI) (NYSE: AGI) will acquire all common shares of Orford not presently owned by Alamos for C$0.10 per share, a transaction valued around C$24 million on a fully diluted basis.

Exchange Ratio and Premiums for Shareholders

Orford shareholders will receive 0.005588 of an Alamos common share for each Orford share they hold, which is based on Alamos’ 20-day volume-weighted average price leading up to January 12, 2024. This deal reflects a 134% premium on the average price and a 114% premium over Orford’s closing price on January 12, 2024, on TSXV.

Strategic Fit and Expertise

David Christie, Orford’s President and CEO, expressed confidence in Alamos’ capabilities to further develop Orford’s projects. He highlighted that the acquisition aligns with Alamos’s strategic objective of securing high-quality, long-term projects in favorable jurisdictions, particularly emphasizing the promise of the Qiqavik Gold project in Nunavik.

Benefits Packaged for Orford Shareholders

The transaction promises shareholders immediate value and the chance to partake in both Orford’s and Alamos’s future successes. Shareholders will benefit from Alamos’s strong financial position and technical expertise, substantially improving Orford’s portfolio advancement.

Unanimous Support by Orford’s Board

Orford’s Special Committee, after careful deliberation and consultations, has recommended the transaction, with the full backing of Orford’s Board of Directors (excluding Alamos’s nominee). Shareholders are encouraged to vote in favor of the acquisition.

Completion Timeline and Conditions

The Acquisition is subject to shareholder approval, regulatory and court endorsements, and TSX, NYSE, and TSXV approvals. Should the deal not be finalized by April 15, 2024, Orford will have access to a C$2 million credit facility provided by Alamos.

About Alamos and Orford

Alamos, an intermediate gold producer, operates mines in North America and is known for its commitment to sustainable development. Orford Mining focuses on gold and critical minerals exploration in Northern Quebec, holding considerable land in the area.

The closing of the deal is anticipated in April 2024, subsequent to which Orford Shares will be delisted from the TSXV, following TSXV approvals.

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