UPDATE 1-AuRico Gold, Alamos Gold shareholders vote in favor of merger

Wed Jun 24, 2015 4:05pm EDT
 
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(Adds deal closing date, background)

June 24 (Reuters) - Shareholders of Canada's AuRico Gold Inc and Alamos Gold Inc on Wednesday voted in favor of a $1.5 billion merger, creating a mid-sized gold producer with operations in Canada and Mexico.

Some 98.8 percent of votes cast by AuRico and 90.6 percent of votes from Alamos shareholders supported the friendly union, which was unveiled in April and drew no competing offers.

The transaction is expected to close on July 2.

Analysts have said the deal makes sense for the two miners because Alamos has excess cash and AuRico has a mine in Ontario that is ramping up production.

Alamos and AuRico shareholders will each own about half the combined company, which will be called Alamos Gold.

A new company, AuRico Metals Inc, will be formed to hold interests in certain AuRico assets, including the Kemess project in British Columbia.

AuRico Chairman Alan Edwards will be chairman of the combined company, while Alamos Chief Executive John McCluskey will be chief executive. Five directors each from AuRico and Alamos will sit on the board. (Reporting by Nicole Mordant in Vancouver; Editing by Chris Reese and Leslie Adler)