Alamos Gold enters definitive deal to sell Turkish unit

Executive Summary

• Alamos Gold Inc. agreed to sell its Turkish subsidiary (Kirazlı, Ağıl Dağ, and Camyurt projects) for a total cash consideration of $470 million.
• Payment schedule: $160 M at closing, $160 M one year later, and $150 M two years later, with the latter two installments secured by bank guarantees.
• Proceeds will be used to fund high‑return growth projects in North America (Phase 3+ Island expansion, Lynn Lake, Puerto del Aire) and to reduce existing debt; transaction expected to close Q4 2025 pending customary conditions and Turkish regulatory approval.

Key Details

• Seller: Alamos Gold Holdings Cooperatief UA & Alamos Gold Holdings BV (Dutch subsidiaries of Alamos Gold Inc.).
• Buyer: Tumad Madencilik Sanayi ve Ticaret AS, a Turkish mining company.
• Assets Sold: 100 % of Dogu Biga Madencilik Sanayi ve Tic. AS, which owns the Kirazlı, Ağıl Dağ, and Camyurt projects in north‑western Turkey.
• Total Consideration: $470 million cash.
• Payment Structure:
• $160 M payable at closing.
• $160 M payable on the one‑year anniversary of closing (secured by an investment‑grade bank guarantee).
• $150 M payable on the two‑year anniversary of closing (also secured by a bank guarantee).
• Guarantees: The second and third installments are fully guaranteed, ensuring Alamos receives the entire $470 M within two years.
• Use of Proceeds:
• Fund development of existing high‑return growth projects (Phase 3+ expansion at Island gold district, Lynn Lake project in Manitoba, Puerto del Aire project in Mexico).
• Reduce existing debt obligations.
• Closing Timeline: Expected in Q4 2025, subject to customary closing conditions and receipt of Turkish regulatory approvals.
• Arbitration Clause: Ongoing arbitration by the Dutch subsidiaries against Turkey under the Netherlands‑Turkey Bilateral Investment Treaty will be suspended and terminated with prejudice once contractual milestones are met; details remain confidential.

Notable Quotes

“This transaction marks a positive outcome, allowing us to crystallize significant value for our Turkish assets and utilize the proceeds to support the development of our portfolio of other high‑return growth projects… These projects are all located in North America, they are all lower cost and they underpin one of the strongest growth profiles in our sector.” – John A. McCluskey, President & CEO, Alamos Gold Inc.