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Osisko Royalties increases ownership of Minera Alamos to 18.7%

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(Kitco News) - Financings this year appear to be off to a good start.

Minera Alamos (TSXV: MAI) said Monday that it closed a private placement announced last month consisting of 30 million common shares at 20 cents per common share for aggregate gross proceeds of C$6 million with Osisko Gold Royalties.

Osisko has increased its shareholdings of the company's common shares from 12.3% to 18.7%.

Minera Alamos said that it intends to use the net proceeds for building its Santana Gold Mine in Sonora, Mexico.

Minera Alamos is trading at 28 cents, near a 52-week high ranging between 9.5 cents and 32 cents.

In an interview with Kitco last week, Oreninc's CEO Kai Hoffmann noted that financings appears to be off to a stronger start. He said that in January African explorer Orezone committed to a $20 million bought deal, and Talisker Resources raised $13 million.

"It took until week eight of last year until we saw the first bought deal. That tells you that banks are at the table, the brokers are available. They are seeing more opportunity now," said Hoffmann.


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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