On April 13, 2015, Alamos Gold Inc. and AuRico Gold Inc. announced that they have entered into a definitive agreement on combining their companies to create a new, intermediate gold producer. The transaction is structured as a merger of equals with a transaction equity valued at approximately US$1.5 billion. In addition, a new company, to be named AuRico Metals Inc., will be created to hold AuRico’s Kemess project, a 1.5% net smelter return royalty on the Young-Davidson mine, AuRico’s Fosterville and Stawell royalties, and will be capitalized with US$20 million of cash.

The proposed transaction will be completed pursuant to a plan of arrangement and will require the approval of 66 2/3% of Alamos shareholders and 66 2/3% of AuRico shareholders. The directors and officers of Alamos and AuRico have entered into support agreements pursuant to which they agreed to vote their shares in favor of the proposed transaction.

AuRico Gold is a leading Canadian Gold producer with projects including the Young-Davidson mine in northern Ontario and the El Chanate mine in Mexico.