Canadian companies Argonaut Gold and Alio Gold on Monday announced an at-market merger in which Argonaut would buy Alio to create an intermediate miner producing 235 000 gold-equivalent ounces a year.
Alio’s shares would be exchanged on the basis of 0.67 of an Argonaut share, with the exchange ratio based on the volume-weighted average prices of the companies’ shares over the 20 trading days ended March 27.
Argonaut CEO Pete Dougherty said that the transaction made sense for both sets of shareholders.
“Combining complementary assets into one larger, more relevant company generates significant synergies.”