Alamos Gold Inc. ("Alamos" or the "Company") today announced the purchase of 25,300,000 common shares (the "Shares") of Corex Gold Corp. ("Corex"), representing approximately 19.07% of the outstanding common shares of Corex (the "Transaction"). The Shares are being acquired by Alamos by way of private placement at a price of C$0.10 per Share.
Alamos carried out the Transaction for investment purposes and may increase or decrease its investment based on market conditions. Pursuant to an Investor Rights Agreement entered into between Alamos and Corex, Corex has granted Alamos a right to participate in future financings, subject to certain terms, to maintain its pro-rata interest. Corex has also granted Alamos the right to nominate up to two (2) directors to the Corex board of directors. Alamos has elected not to exercise such right at this time but retains the right to do so in the future by giving written notice to Corex.
"With its favourable geology and proximity to the Mulatos mine, the Santana Property represents an attractive exploration opportunity. We look forward to supporting Corex as they continue exploring this property," said John A. McCluskey, President and Chief Executive Officer.
The Early Warning Report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by the Company on Corex's SEDAR profile at www.sedar.com. The Transaction remains subject to customary approvals, including the Toronto Stock Exchange.