Alamos Gold ends $1B fight in Turkey with $470M assets sale

[Ben Graham]

Canadian miner Alamos Gold (TSX, NYSE: AGI) is selling its Turkish subsidiary for $470 million to Middle East-based Tumad Madencilik Sanayi, a unit of conglomerate Nurol Holding, ending a billion-dollar legal battle with Ankara.

The deal hands over the Kirazlı, Ağı Dağı and Çamyurt projects in northwestern Turkey to Tumad. It also sets out that arbitration proceedings launched in 2021 by Alamos’ Netherlands units against Turkey will remain suspended and be permanently discontinued once contractual milestones are met.

Alamos entered Turkey in 2010 but faced persistent setbacks. Its most high-profile clash came in 2019, when mining concessions for the Kirazlı gold project, near Mount Ida, expired amid mass protests. Activists accused Alamos of excessive tree cutting and planned cyanide use, allegations the miner denied. It also clarified at the time that cyanide would be used the final step of the extraction process and that it had taken measures to ensure there would be no impact in the forested area.

Alamos Gold says ‘political agenda’ behind massive protest against its Turkish project

In response, Alamos filed a $1-billion arbitration claim against the Turkish government for what it called “unfair and inequitable treatment.” That claim will be dropped once the sale closes.

The Kirazlı project was projected to produce 104,000 ounces of gold annually over five years at all-in sustaining costs of $373 per ounce.

Alamos has paused the proceedings and will drop the claim once the deal closes. The Toronto-based miner plans to use proceeds to pay down debt and advance its key growth projects, including the Phase 3+ Expansion at Island Gold in Ontario, the Lynn Lake Project in Manitoba, and the Puerto Del Aire project in Mexico.

The transaction is expected to close in the fourth quarter of 2025.