BUZZ-AuRico Gold Inc, Alamos Gold Inc: To merge in $1.5-bln deal

Mon Apr 13, 2015 10:17am EDT
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** Canadian gold miners Alamos Gold shares up 7.7 pct at C$7.98; AuRico Gold Inc up 8.5 pct at C$4.10

** Alamos Gold U.S.-listed shares up 7.8 pct at $6.35; AuRico Gold U.S.-listed shares up 9 pct at $3.26

** Companies say they will merge in a deal valued at about $1.5 bln, combining high-yield assets such as the Mulatos mine in Mexico and the Young-Davidson mine in Ontario, Canada

** Alamos and AuRico expect the combined company, Alamos Gold Inc, to produce 375,000-425,000 ounces of gold in 2015 in Mexico and Canada

** Alamos says it will buy about 27.9 mln AuRico shares, or 9.9 pct of the company, in a private placement at $2.99/share for gross proceeds of about $83.3 mln

** Companies also said a new company, AuRico Metals Inc, will be formed and capitalized with $20 million to hold interests in certain AuRico mines, including Kemess project in British Columbia