Minera Alamos Closes Nevada Mine Acquisition, Expands US Gold Footprint

Minera Alamos (TSXV:MAI,OTCQX:MAIFF) has completed its purchase of the Pan gold mine and two development-stage projects in Nevada from Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX).

The Toronto-based company said Wednesday (October 1) that it closed the previously announced transaction to acquire the Pan mine, along with the Gold Rock and Illipah projects in White Pine County.

Under the terms, Minera Alamos paid Equinox Gold roughly US$88 million in cash and issued nearly 97 million shares, leaving Equinox with a 9.15 percent stake in the company. The company also secured a US$25 million gold prepayment facility with Auramet International, structured as a 24-month loan repayable in 7,830 ounces of gold.

CEO Darren Koningen said the acquisition provides both immediate production and a pipeline of late-stage assets.

“We are excited to close this transformational acquisition for Minera Alamos,” Koningen said.

“The addition of the Pan gold mine, along with the Gold Rock and Illipah projects, provides immediate production and cashflow while significantly expanding our late-stage project development pipeline.”

Pan is a heap leach operation that has been producing around 40,000 ounces of gold annually.

Combined with development plans at Copperstone, Cerro de Oro and Gold Rock, Minera Alamos expects to eventually scale production to more than 175,000 ounces a year, according to earlier preliminary assessments.

The addition of Pan provides steady cashflow, while Gold Rock and Illipah add long-term optionality. Both development projects are in Nevada’s Battle Mountain-Eureka trend, a region known for its high concentration of producing gold mines.

Construction and permitting activities are underway, with timelines tied to gold market conditions and project economics.

Meanwhile, the sale will allow Equinox Gold to retain exposure to the Nevada assets through its minority equity stake in Minera Alamos. Equinox Gold, which operates multiple mines across the Americas, said previously that it was looking to streamline its portfolio and recycle capital into core projects.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.