(Reuters) - Canadian miner Alamos Gold Inc (AGI.TO) said it will buy Aurizon Mines Ltd (ARZ.TO) for about C$780 million ($792.96 million) in cash and stock to get access to Aurizon’s only operating gold mine, Casa Berardi, in northern Quebec.
Casa Berardi has produced 803,000 ounces of gold from November 2006 until December 2011, according to Aurizon’s website.
British Columbia-based Aurizon has eight properties in Quebec, which include an advanced-stage gold development property of the Heva and Hosco West Extension areas.
Alamos, which owns and operates the Mulatos mine in Mexico, has offered to buy Aurizon for C$4.65 per share, representing a premium of 36 percent to Aurizon’s Friday closing price of C$3.41 on the Toronto Stock Exchange.
The combined entity is expected to have an estimated market value of about C$2.6 billion, Alamos said in a statement.
Alamos, which has been acquiring Aurizon shares over the past few days, said it now owns 26.5 million Aurizon shares, representing more than 16 percent of the issued and outstanding Aurizon shares.
Alamos said that the takeover offer, which will be open for acceptance for at least 35 days following the mailing of the take-over bid circular, will be fully financed and will not require approval by its shareholders.
Dundee Capital Markets advised Alamos on the deal. ($1 = 0.9837 Canadian dollars)
Reporting by Sandhya Vijayan in Bangalore; Editing by Supriya Kurane