VANCOUVER (miningweekly.com) – TSX-listed Alamos Gold has closed a $250-million bought deal offering, the proceeds of which, combined with existing cash on hand, will be used to repay $315-million of outstanding senior secured 7.75% high-yield notes maturing in 2020.
Alamos sold 31.45-million common shares at a price of $7.95 apiece.
The shares were purchased on a bought deal basis by a syndicate of underwriters led by TD Securities, BMO Capital Markets and Macquarie Capital Markets Canada.
The Toronto-based company saw a substantial rise in mine site free cash flow in 2016, reflecting higher output combined with significant cost and capital reductions.
This trend is expected to continue into 2017, with further production growth and cost reductions, driven by the ramp-up of the Young-Davidson mine, in Ontario, and development of La Yaqui Phase I, located near the cornerstone Mulatos mine, in Mexico.
Gold output is forecast to rise to between 400 000 oz and 430 000 oz in 2017. All-in sustaining costs are expected to decrease to $940/oz of gold sold, reflecting further cost reductions at both Young-Davidson and Mulatos, according to the company.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
EMAIL THIS ARTICLE SAVE THIS ARTICLE
ARTICLE ENQUIRY
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here