Gold producer acquires Nunavik-based exploration company

An Ontario-based mining company has entered an agreement to acquire Nunavik-focused mineral exploration company Orford Mining Corp.

Alamos Gold Inc. announced the deal, worth $16 million, Monday in a news release.

The release highlighted that the deal includes what it describes as the “highly prospective” Qiqavik Gold Project, located approximately 100 kilometres south of Salluit in central Nunavik.

Alamos operates three gold mines, two in Canada and one in Mexico.

The sale will bring much deeper pockets to Orford’s properties, which could lead to their development and more job opportunities for people in Nunavik, said David Christie, Orford’s president and CEO, in an interview with Nunatsiaq News.

“More money being spent in an area is always a good omen towards potential jobs down the road,” he said.

“With Alamo coming in, that benefits a lot.”

The deal is subject to Orford shareholders’ approval with a vote expected in March, according to Orford in a news release.

In a release, Alamos president and CEO John McCluskey called the acquisition of Orford consistent with the company’s strategy of developing “high-quality, long-term projects in good jurisdictions.”

“Qiqavik fits that strategy perfectly as an attractive early-stage gold project, located in one of the top mining jurisdictions in the world,” he said.

Nunatsiaq News attempted to contact Scott Parsons, vice-president of investor relations for Alamos, but he did not respond.

The deal also includes Orford’s lithium projects in Nunavik, the Joutel gold exploration sites and the West Raglan nickel project with Wyloo Metals Pty. Ltd.