Orford Mining (TSX-V:ORM) Corp shares shot up 100% to $0.09 on Monday after the Quebec-focused gold and critical mineral explorer announced that it has agreed to be acquired by Alamos Gold Inc (TSX:AGI, NYSE:AGI) in an all-stock deal valued at approximately C$24 million, or about C$0.10 per Orford share.
Orford Mining (TSX-V:ORM) shareholders will receive 0.005588 of an Alamos common share for each Orford Share held.
Alamos currently owns approximately 27.5% of Orford Mining’s issued and outstanding shares.
"Our acquisition of Orford is consistent with our strategy of building out a pipeline of high-quality, long-term projects, in good jurisdictions, to complement our near-term organic growth projects in Canada," Orford Mining CEO John McCluskey said in a statement.
"Qiqavik fits that strategy perfectly as an attractive early-stage gold project, located in one of top mining jurisdictions in the world."
Alamos will also acquire interests in the West Raglan, Joutel Properties, and Nunavik Lithium projects that are currently owned by Orford Mining.
The transaction is expected to close in April 2024.
Shares of Alamos Gold eased 1.4% to C$16.99 in late-morning Toronto trading on Monday.