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Minera Alamos announces C$14 million financing with Osisko Gold Royalties

Kitco News

Minera Alamos (TSXV:MAI) said today that it agreed to a C$14 million combined equity and royalty financing package with Osisko Gold Royalties.

Funds will be used for the planned construction of Minera's Santana gold mine in Sonora,

Construction is expected to take six to eight months and cost C$10 million.

Some major components of the financing are 30 million common shares purchased on a non-brokered private placement basis at a price of 20 cents per share for proceeds of C$6 million. Osisko will also acquire a perpetual 3% net smelter return royalty for a cash payment of C$5 million.

Minera Alamos was up 4.17% to 25 cents a share as of 2 p.m. ET today.

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