Alamos Gold has completed its acquisitions of Esperanza Resources and Orsa Ventures, which were initially announced in July. Esperanza shareholders cast 96.25% of their votes in favor of the Esperanza transaction at a shareholders meeting on August 27, while Orsa shareholders cast 98% of their votes in favor of the Orsa transaction at a shareholders meeting on September 11. Subsequent approvals from the Supreme Court of British Columbia allowed completion of the transactions.
The Esperanza transaction was valued at about C$69.4 million; the Orsa transaction was valued at about C$3.5 million.
Esperanza’s primary asset is the Esperanza gold project located 110 km south of Mexico City in Morelos state, Mexico. The advanced-stage, open-pit project has measured and indicated resources of 1.5 million oz of gold and 16 million oz of silver. In September 2011, Esperanza completed a preliminary economic assessment of the project, outlining an initial six-year mine life with expected production averaging 103,000 oz/y of gold at average cash costs of $499/oz net of by-product credits.
Orsa Ventures’ primary asset is its right to earn a 100% interest in the Quartz Mountain property in Lake county Oregon, United States, as well as other assets in Oregon and Nevada. The Quartz Mountain property is located on the northern extension of the Basin and Range province of Nevada and hosts an inferred resource of 2.85 million oz of gold, grading 0.80 g/mt.
The Orsa property is located 50 km west of the community of Lakeview, Oregon, and is accessible year-round by a paved highway and an extensive network of forest service roads. An office and core storage facility are located in Lakeview.