A significant shift in strategy has been announced by Alamos Gold, a Canada-based mining company, which revealed its decision to divest its Turkish development projects. The company will sell these assets to Tümad Madencilik Sanayi ve Ticaret for a total of $470 million in cash. This move is part of Alamos’s focus on expanding its operations in North America, as it seeks to streamline its assets toward more lucrative opportunities.
The transaction encompasses three key projects located in northwestern Türkiye: Kirazlı, Ağı Dağı, and Çamyurt. These projects are managed through Alamos’s wholly owned Dutch subsidiaries. In a statement, CEO John McCluskey highlighted the benefits of the transaction, stating that it allows the company to realize substantial value from its Turkish assets while also providing capital to enhance its portfolio of high-return growth projects in North America.
The proceeds from the sale are earmarked for multiple initiatives. Specifically, funds will be directed toward the Phase 3+ expansion of Island Gold in Ontario, the development of the Lynn Lake project in Manitoba, and the Puerto Del Aire project in Mexico. Additionally, the sale will facilitate a reduction in the company’s debt.
The completion of this transaction is anticipated in the fourth quarter, pending the necessary regulatory approvals in Türkiye. Importantly, the agreement stipulates that the arbitration proceedings initiated by Alamos’s subsidiaries against the Turkish government, under the Netherlands-Türkiye Bilateral Investment Treaty, will be suspended. These proceedings will eventually be terminated once specific contractual milestones are fulfilled.
Alamos Gold also manages the Young-Davidson mine in Ontario and operations in the Mulatos district of Mexico, employing over 2,400 individuals. This strategic exit from Turkey marks a pivotal moment for the company as it recalibrates its focus on markets with more favorable growth prospects.
