Home > News > Alamos and AuRico...

Alamos and AuRico Shareholder Merger Vote on June 24, 2015

Vote to Proceed Without Employee Share Purchase Plan

By Frank Giorno

Jun 20, 2015

Alamos Gold Inc. and AuRico Gold Inc. announced  they have withdrawn their proposed AuRico Metals Inc. employee  share purchase plan that was to be presented as part of the special shareholders meetings called by both companies on June 24, 2015 to approve  the proposed merger of the companies.

AuRico Metals is the new company that has been created as part of the previously announced merger of equals between Alamos and AuRico. Approval of the merger of Alamos and AuRico is not conditional upon approval of the Plan.

The decision to withdraw the proposed employee share purchase plan came in response to a recommendation made by Institutional Shareholder Services Inc. a proxy advisory firm.

The original plan for AuRico Metals was based on the approved plan of AuRico and while the plan received a positive recommendation from proxy advisory firm Glass, Lewis & Co., it failed to win the recommendation of Institutional Shareholder Services Inc. 

No explanation was provided for why Institutional Shareholder Services recommended that the Employee Share purchase plan be scrapped days before shareholders of Alamos Gold and AuRico Gold are to vote on the plan to merge the two company.

There also was no explanation why Alamos and AuRico management decided to go with the negative report from Institutional Shareholder Services instead of the supportive report issued by Glass, Lewis &Co.

A call to Anne Day, Vice-President of Investor Relations for AuRico Gold has not been returned.

Despite the withdrawal of the employee share purchase plan, the long term incentive plan of AuRico Metals remains unchanged and will be presented to Alamos and AuRico shareholders at their respective meetings for approval on June 24, 2015.

In a joint management information circular dated May 22, 2015, Alamos and AuRico disclosed the proposed Plan for AuRico Metals to be presented to Alamos and AuRico shareholders for approval at their respective Meetings.

Alamos’ and AuRico's Board of Directors unanimously recommend that their shareholders vote in favour of the proposed merger.

AuRico and Alamos shareholders are to vote their proxy before 10:00 a.m. and 11:00 a.m. (Eastern time), respectively, on Monday, June 22, 2015.

 For more information and assistance in voting your proxy, please contact Kingsdale Shareholder Services at 1-800-775-5159 or by email at contactus@kingsdaleshareholder.com.

About Alamos Gold

Alamos is an established Canadian-based gold producer that owns and operates the Mulatos Mine in Mexico, and has exploration and development activities in Mexico, Turkey and the United States. Alamo employs more than 500 people and is committed to the highest standards of sustainable development. As of May 5, 2015, Alamos had 127,357,486 common shares outstanding (140,164,052 shares fully diluted), which are traded on the TSX and NYSE under the symbol "AGI".

About AuRico Gold

AuRico Gold is a leading Canadian gold producer with mines and projects in North America that have significant production growth and exploration potential. AuRico focuses on its core operations including their cornerstone Young-Davidson gold mine in Matachewan, Ontario, and the El Chanate mine in Sonora State, Mexico. AuRico's project pipeline also includes the advanced development Kemess Property in northern British Columbia and the Lynn Lake Gold Camp in northern Manitoba.

The Company also has other exploration opportunities in Canada and Mexico.

For further information please visit the Alamos and AuRico websites at www.alamosgold.com and www.auricogold.com.

Photo: top of page, AuRico Headframe at their Young-Davidson mine property in Matachewan, Ontario