Minera Alamos Transforms into Nevada Gold Producer Through Strategic Acquisition

• Minera Alamos acquired the Pan gold mine and Gold Rock project in Nevada from Equinox for $90 million cash and $25 million in shares, transforming from a developer into an immediate cash-flowing producer with 36,000+ ounces annual production.
• The acquisition enables a clear path to 150,000-175,000 ounces annually through development of fully-permitted assets including Copperstone and Gold Rock, plus Cerro de Oro pending permits expected in H1 2026.
• Hub-and-spoke strategy centers on Pan for carbon stripping, saving $10-15 million per project in capex while crusher optimisation could increase Pan throughput to 50,000-55,000 ounces annually.
• Trading at 0.2x NAV versus peer group at 0.8x NAV, with $135 million financing from high-quality institutional investors and built-in warrant financing structure providing future growth capital without dilution.
• 70% of $1 billion pro-forma corporate NAV is fully permitted, eliminating reliance on government approvals and enabling organic growth funded entirely from operating cash flow with planned 10:1 share consolidation and NYSE American listing.

Minera Alamos has executed a transformative acquisition that repositions the company from a development-stage explorer awaiting permits to an immediate gold producer with substantial growth potential. The purchase of the producing Pan mine and the permitted Gold Rock project from Equinox Gold represents a fundamental strategic pivot that addresses key investment concerns while maintaining the company's core objective of building a mid-tier mining operation. This transaction provides immediate cash flow generation, eliminates dependency on government permitting timelines, and creates a platform for organic growth across a portfolio of Nevada and Mexican assets.

Transaction Structure and Valuation

The acquisition encompasses the Pan producing mine, the fully-permitted Gold Rock development project, and the Illipah exploration asset in Nevada for total consideration of $115 million - $90 million in cash and $25 million in shares. Equinox will hold slightly over 9% of Minera Alamos on a pro-forma basis following the transaction. The purchase multiple of approximately 0.4x compares favorably to recent transactions in the sector ranging from 0.6x to 0.9x, representing significant value creation potential.

Pan mine has demonstrated consistent operational performance, producing 35,000-40,000 ounces annually with 2025 guidance tracking toward 36,000-37,000 ounces at the lower end of cost guidance. The asset maintains an eight-year mine life despite being in production for several years, reflecting successful resource replacement. The mine features 30,000 ounces of pad inventory at closing and recently completed a pad expansion providing four years of additional capacity.

Gold Rock, located eight kilometers south of Pan, received full permitting and benefits from a 2021 preliminary economic assessment outlining a 6.5-year mine life producing 55,000 ounces annually. The project features attractive metallurgy with strip ratios of 0.66-0.87 compared to typical 0.5 ratios for similar heap leach operations. Current pit optimisation shells were calculated at $1,700 gold, presenting significant upside potential at current gold prices above $3,000, which should extend mine life and increase throughput by incorporating lower-grade material in the 0.3 gram range.

Operational Enhancement Through Strategic Integration

Management has identified immediate optimisation opportunities at both Nevada assets. At Pan, the primary constraint is crushing capacity, which can be expanded with a new crusher costing several million dollars to increase annual production to 50,000-55,000 ounces. This relatively modest capital investment offers substantial return on investment through increased throughput at an operating asset.

For Gold Rock, planned modifications include eliminating the contemplated vat leaching circuit in favor of a simplified two-stage crush system, significantly reducing the project's capital requirements compared to the preliminary economic assessment. An updated technical report consolidating both Pan and Gold Rock is expected within six to eight months, providing investors with comprehensive economics reflecting these operational enhancements.

The hub-and-spoke operating model creates meaningful synergies across Minera Alamos' portfolio. Loaded carbon from Gold Rock, Copperstone, and potentially Cerro de Oro will be transported to Pan for stripping, eliminating the need to build ADR plants at each satellite operation. This approach saves approximately $10-15 million per project in capital expenditures while centralising metallurgical processing at a proven facility.

Development Pipeline Across Nevada and Mexico

The acquisition fundamentally alters Minera Alamos' growth trajectory by providing operating cash flow to fund project development without additional equity dilution or reliance on external financing. Pro-forma corporate net asset value reaches $1 billion, with 70% represented by fully-permitted assets, creating clear visibility to production growth.

The development sequence prioritises capital efficiency and earnings per share growth. Following Pan optimisation and the consolidated technical report, Copperstone development will commence with underground mining led by the existing technical team. Cerro de Oro and Gold Rock development can be sequenced flexibly based on capital allocation priorities and permit timing. Cerro de Oro permits are expected in the first half of 2026, though production no longer depends on this approval given the permitted Nevada assets.

Copperstone represents significant geological upside following extensive reclassification work. Previously characterised as a low-sulfidation epithermal system with typical 200-300 meter shoot dimensions, comprehensive re-logging and mapping has reinterpreted the deposit as an intrusion-related IOCG system utilising thrust faults as fluid conduits. This geological model suggests substantial down-dip potential extending kilometers at depth, supported by deep intercepts, creating opportunity for meaningful resource expansion.

Cerro de Oro similarly offers exploration upside with limited historical drilling relative to the mineralised system's scale. Both assets have potential to double or triple current resource estimates, providing organic growth opportunities beyond the initial production profile.

Financing Architecture Supporting Growth

The $135 million financing supporting the acquisition consists of institutional equity subscriptions with an attached five-year warrant structure at premium exercise prices. Management emphasised that participants are long-term institutional investors rather than warrant arbitrageurs, with approximately ten investors writing the majority of checks. This investor quality provides ongoing market support and aligns shareholder interests with long-term value creation.

The warrant structure mirrors successful precedents including Orla Mining's financing for Camino Rojo and Musselwhite acquisitions. Management views the warrants as built-in future financing that, when exercised at a $750 million market capitalisation, could fund project expansions at Copperstone or Cerro de Oro or finance additional acquisitions. The incoming chairman personally subscribed for $1 million, demonstrating management confidence.

Additional near-term financing includes a gold prepayment facility of approximately $25 million to accelerate Copperstone development, forward-selling a small portion of 2026-2027 production. This non-dilutive capital source maintains financial flexibility while funding high-return development projects.

The company plans a 10:1 share consolidation to tighten the capital structure ahead of a planned NYSE American listing expected within six to eight months. The U.S. listing should trigger inclusion in the Russell 2000 and GDXJ indices, creating sustained institutional buying demand.

Valuation Gap Creating Re-rating Opportunity

Minera Alamos currently trades at 0.2x net asset value compared to producing peers averaging 0.8x NAV, representing a 75% valuation discount. Management attributes this gap to the transition from developer to producer and typical post-announcement trading dynamics where acquisitions financed with equity tend to settle near deal pricing until closing.

Several near-term catalysts should drive valuation re-rating toward peer multiples. Transaction closing removes the overhang of financing completion. Pan optimisation and the updated consolidated technical report demonstrating enhanced economics provide the first re-rating opportunity. Copperstone construction commencement and Cerro de Oro permitting represent subsequent value inflection points. Gold Rock and Cerro de Oro production starts to complete the transformation to 175,000+ ounce mid-tier producer trading in line with comparable companies.

Portfolio Rationalisation and Future Strategy

Concurrent with the Nevada acquisition, management is evaluating non-core assets for potential divestment to raise additional cash for core portfolio acceleration. Santana has been reclassified to non-core given its 20,000-ounce production profile relative to substantially larger opportunities at Copperstone, Gold Rock, and Cerro de Oro. The smaller project requires disproportionate management attention that could be redirected to higher-value developments.

This portfolio prioritisation reflects the discipline required as companies scale from junior developers to mid-tier producers. Management bandwidth must focus on projects capable of delivering meaningful production and returns relative to the growing corporate baseline. Copperstone and Cerro de Oro each offer potential for 100,000+ ounce annual production profiles warranting concentrated technical and capital resources.

Management has signaled a pause on mergers and acquisitions over the next two years to focus on integration, optimisation, and organic development execution. Once the anticipated re-rating materialises and the company achieves steady-state mid-tier producer status, additional creative acquisitions may be evaluated. The five-year vision targets exceeding 500,000 ounces annual production, requiring successful development of the existing pipeline plus potential future additions.

TL;DR

Minera Alamos' $115 million acquisition of Pan mine and Gold Rock project from Equinox transforms the company into an immediate Nevada gold producer with 36,000+ ounces annual production and clear path to 175,000 ounces through fully-permitted assets. Trading at 0.2x NAV versus 0.8x peer average, the company offers 75% valuation upside as operating cash flow funds organic growth without dilution, eliminating dependency on government permits while maintaining significant exploration upside at Copperstone and Cerro de Oro.

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