Argonaut completes merger with Alio
Argonaut Gold (TSX: AR) and Alio Gold (TSX: ALO) have completed their previously announced business combination to create a diversified precious metals producer with output of over 235,000 gold-equivalent ounces annually.
In late March, the companies entered into an agreement for an all-share merger, under which each Alio common share will be exchanged for 0.67 of an Argonaut common share. Upon completion, Argonaut and Alio shareholders would own 76% and 24% of the pro-forma company respectively.
The combined entity will have a North America-focused mining portfolio that includes the El Castillo, San Agustin and La Colorada mines in Mexico, the Florida Canyon mine in Nevada, The combined entity will have a North America-focused mining portfolio that includes the El Castillo, San Agustin and La Colorada mines in Mexico, the Florida Canyon mine in Nevada, as well as various exploration projects across Canada and in Mexico.
“By combining Argonaut with Alio, we have created a diversified, intermediate gold producer with four producing mines, an enviable growth asset pipeline and increased capital markets scale,” Argonaut president and CEO Pete Dougherty said in a press release.
Argonaut’s common shares will continue trading on the Toronto Stock Exchange with no changes, while Alio common shares are expected to cease trading on the NYSE and will delist from the Toronto Stock Exchange after close of business on July 3.