The proceeds will be used to support loan facilities, operational costs and the advancement of the Magino Gold mine. Credit: Ivan Bandura on Unsplash.

Alamos Gold has concluded a private placement that helped it garner C$50m ($36.8m) by acquiring 13.8% of Argonaut Gold’s common shares.

In the placement, Alamos subscribed to 174,825,175 shares at C$0.286 each. 

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This move is part of a larger agreement under which Alamos will acquire all issued and outstanding shares of Argonaut.

The $325m takeover was announced last month.

Argonaut plans to use the net proceeds from the placement to meet its immediate liquidity needs.

These funds will support loan facilities, operational costs and the advancement of the Magino Gold mine, along with general working capital requirements.

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No more than C$10m will be directed towards the US and Mexican assets of the company.

Alamos Gold also closed the acquisition of all the issued and outstanding common shares of Orford Mining, following a final order issued by the Ontario Superior Court of Justice.

Alamos Gold president and CEO John McCluskey said: “We are pleased to complete the acquisition of Orford Mining and its highly prospective Qiqavik Gold Project, located in Northern Quebec.

“The acquisition is consistent with our strategy of building out a pipeline of high-quality, long-term projects, in good jurisdictions to complement our near-term organic growth projects in Canada.”