Alamos Gold Inc. (AGI.TO: Quote) said it has commenced an offer to acquire Aurizon Mines Ltd. (AZK: Quote) for about C$780 million in cash and shares. The offer would remain open until 5:00 p.m. (Toronto time) on February 19, 2013 unless withdrawn or extended. Also, Alamos has applied to list its shares on the NYSE under the symbol “AGI”.
Pursuant to the offer, Alamos proposes to acquire all outstanding shares of Aurizon for C$4.65 per Aurizon Share. Each Aurizon shareholder can elect to receive consideration per Aurizon Share of either C$4.65 in cash or 0.2801 of an Alamos Share, subject in each case to pro-ration based on a maximum cash consideration of C$305 million and maximum number of Alamos Shares issued of 23.5 million.
According to the company, the offer reflects a premium of nearly 40% based on the closing price of C$3.33 for the Aurizon Shares on the TSX on January 9, 2013, and a premium of some 37% based on the volume-weighted average price of the Aurizon Shares on the TSX for the 20 trading days ended January 9, 2013.
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by RTT Staff Writer
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