Alamos Gold Sells Off Quartz Mountain Gold Project For $21 Million, Equity Interest
Alamos Gold (TSX: AGI) has agreed to sell off one of its non-core assets to Q-Gold Resources (TSXV: QGR) as the company looks to monetize certain of its assets.
The transaction will see Q-Gold acquire the Quartz Mountain Gold project in Oregon. Consideration for the project is said to consist of $21 million in cash and common shares, plus a 9.9% interest in Q-Gold.
The $21 million figure will see $2.85 million in cash paid up front, alongside $8.15 million in guaranteed payments in cash or common shares over a three year period, plus $10 million to be paid on certain milestones, including $5 million upon completion of a feasibility study or reaching a construction decision, and $5 million that is payable upon key permits being received for construction.
A 9.9% ownership interest in Q-Gold is expected to be issued upon closing of the transaction.
The Quartz Mountain Gold Project is said to have seen over $20 million spent on the project historically, which includes over 100,000 metres of drilling conducted on site. The project currently boasts a resource of 339,000 measured and indicated gold ounces, as well as 1.15 million inferred gold ounces.
“The sale of Quartz Mountain is consistent with our strategy of monetizing non-core assets as we develop our portfolio of high-return growth projects including the Phase 3+ Expansion at Island Gold, Lynn Lake, and PDA,” commented Alamos Gold CEO John McCluskey.
Alamos Gold last traded at $37.88 on the TSX.
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