Canadian mining company Alamos decamps from Turkey, disposes of three gold mines to Nurol for a sum of $470 million
In a significant move, Canadian mining company Alamos Gold has agreed to sell all of its Turkish assets to Tumad, a subsidiary of Ankara-based Nurol Holding, for a total of $470 million. This sale will allow Alamos Gold to focus on its North American portfolio and reduce debt obligations.
John A. McCluskey, Alamos Gold's President and CEO, stated that the sale provides value for the Turkish assets. The deal will be completed in three stages, with Alamos receiving $160 million at closing, another $160 million one year later, and a final $150 million on the second anniversary of the closing. The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approval in Turkey and other customary conditions.
Alamos Gold is a mid-tier gold producer with operations in Canada, Mexico, and a development-stage project in the United States. The company employs more than 2,400 people and is listed on both the Toronto Stock Exchange and the New York Stock Exchange under the symbol "AGI."
The Turkish assets being sold include the Kirazli, Agi Dagi, and Camyurt gold projects. Kirazli was the most advanced of Alamos's three projects in Turkey. Operations were suspended in 2019 after permits were not renewed, and the forestry license was later cancelled. The projects are owned by Alamos through its Netherlands-based subsidiaries and have been the subject of protracted disputes with Turkish authorities in recent years.
As part of the agreement, arbitration proceedings brought by Alamos's Netherlands subsidiaries against the Republic of Turkey under the Netherlands-Turkey Bilateral Investment Treaty will remain suspended and will be permanently discontinued once contractual milestones are met.
The proceeds from the sale will support the development of projects in Ontario, Manitoba, and Mexico. In addition to this, the company also plans to use part of the funds to reduce debt obligations. The Island Gold Phase 3+ expansion in Ontario, the Lynn Lake project in Manitoba, and the Puerto Del Aire project in Mexico will receive funding from the sale.
Tumad is part of Nurol Holding, a conglomerate active in construction, defense, tourism, and mining. The company will now take over the operations of the sold assets.
This sale marks a significant step for Alamos Gold, allowing the company to focus on its North American operations and further its growth in the region.
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