Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Vancouver-based Aurizon Mines Ltd. (TSX:ARZ) has announced a special committee to evaluate a unsolicited takeover bid from Toronto-based Alamos Gold Inc. (TSX:AGI), reports Business in Vancouver.
Alamos announced its bid January 14. The offer values the company at approximately $780 million in cash and shares, or $4.65 per Aurizon share.
In making the bid, Alamos president and CEO John McCluskey pitched Aurizon shareholders on its takeover plans.
“We believe the combined companies will form one of the strongest and lowest-risk production and growth profiles in the gold sector today,” he said. “The offer, combining the world class assets of the two companies, demonstrates Alamos’ ability to identify and pursue opportunities that present a strong strategic fit with our goal to become an intermediate gold producer.”
Aurizon announced January 18 that it has appointed Scotia Capital Inc. as financial adviser and DuMoulin Black LLP and Blake, Cassels & Graydon LLP as legal counsel to assist in responding to the bid.
According to Alamos, the offer of $4.65 per share represents a premium of approximately 40% based on Aurizon’s January 9 closing share price on the Toronto Stock Exchange of $3.33.
As of press time, Aurizon stock was trading at $4.66.
