Aurizon Mines reviews bid from Alamos Gold

Aurizon Mines says it is reviewing $792M buyout offer from competitor Alamos Gold

Associated Press

NEW YORK (AP) -- Aurizon Mines Ltd. said Tuesday it is reviewing a $792 million takeover offer from Alamos Gold Inc., a rival Canadian gold producer.

Alamos said a special committee of company directors will assist the board in reviewing Alamos' unsolicited proposal. It asked shareholders not to take any action on the offer until the board makes a recommendation.

On Monday Alamos said it had increased its stake in Aurizon to 16 percent from about 2 percent over the last few days, and it offered to buy the company for 780 million Canadian dollars ($792 million) in cash and stock.

. Alamos said that it would become a leading intermediate gold company by buying Aurizon, as it would gain another mine and greater production.

U.S. shares of Aurizon rose 7 cents to $4.65 in afternoon trading Tuesday after gaining 32.4 percent on Monday. Its shares have traded in a 52-week range of $3.19 to $5.77.