Canadian mining company Alamos Gold (AGI.US) has divested its Turkish assets for a price of 470 million US dollars.

Canadian mining company Alamos Gold (AGI.US) has agreed to sell its Turkish assets to local business group Nurol Holding for $470 million, thereby divesting a portfolio that had been involved in a $1 billion legal claim. Alamos Gold announced in a statement last Sunday evening that it had reached an agreement to sell its subsidiary Dogu Biga Madencilik Sanayi ve Ticaret AS to a Nurol subsidiary, Tumad Madencilik Sanayi ve Ticaret AS. The subsidiary has three gold and silver development projects in northwestern Turkey. Alamos Gold has also agreed to halt arbitration proceedings against Turkey after "certain contract milestones are reached," but did not disclose more details. Previously in 2021, Alamos Gold had filed a $1 billion treaty arbitration claim after the Turkish government refused to renew the mining permit for one of its three projects, Kirazli, which has been stagnant since 2019. The transaction price includes a $160 million upfront payment to be paid at the time of the transaction's completion (expected in the fourth quarter), followed by two additional payments over the next two years. Alamos Gold stated that the proceeds from the sale will be used for investments in projects in North America and Mexico, as well as debt repayment.