Alamos believes that the offer is attractive to Aurizon shareholders for the following reasons:

Significant premium

 

  • Based on the closing price of $16.60 per Alamos share on the TSX on Jan. 9, 2013, the consideration offered under the offer has a value of $4.65 per Aurizon share, representing a premium of approximately 40 per cent and 39 per cent, respectively, over the closing price of $3.33 and $3.39 per Aurizon share on the TSX and NYSE on Jan. 9, 2013. Based on the volume-weighted average price of Alamos shares on the TSX for the 20 trading days ended Jan. 9, 2013, the offer represents a premium of approximately 37 per cent over the volume-weighted average price of the Aurizon shares on the TSX and NYSE for the same period.

Creation of a leading intermediate gold company

 

  • The combination of Alamos and Aurizon will immediately create a new leading intermediate gold mining company with increased diversification, scale and liquidity. The combined entity is anticipated to have an estimated market capitalization of approximately $2.6-billion, with enhanced visibility among the international investor community as well as continued exposure to the North American capital markets through listings on both the TSX and the NYSE. The combined company, with two steady producing, low-cost mines located in stable jurisdictions, will be strongly positioned for growth.

Established, well-financed, shareholder-focused team in place....AGI should pop higher today on completion of the deal!