Minera Alamos Acquires Sabre: A Strategic Move for Gold Production Diversification

Minera Alamos, a gold production and development company, has recently acquired all of the issued and outstanding common shares of Sabre Gold Mines Corp. (TSX: SGLD; OTCQB: SGLDF) in a transaction valued at approximately CAD$18.5 million. This strategic move allows Minera Alamos to diversify its portfolio and strengthen its position in the gold mining sector. The acquisition of Sabre's shares is expected to provide significant synergies and contribute to Minera Alamos' long-term growth and profitability.



The primary asset of Sabre Gold Mines Corp. is the Copperstone gold project, located in La Paz County, Arizona, USA. The project is a past-producing mine that operated from 1987 to 1993, producing a total of 514,000 oz of gold. The Copperstone project has significant additional resource ounces and is at an advanced stage of permitting for a near-term mine restart. The acquisition of Sabre's shares provides Minera Alamos with an opportunity to leverage its in-house mine-building expertise and previously acquired process plant equipment to accelerate the restart of the Copperstone mine, taking advantage of the current strong gold price environment.

The acquisition of Sabre's shares also allows Minera Alamos to diversify its portfolio across jurisdictions, production profiles, and gold price sensitivities. Before the acquisition, Minera Alamos' primary assets were in Mexico, with the Santana open-pit, heap-leach mine in Sonora and the Cerro de Oro oxide gold project in northern Zacatecas. The addition of the Copperstone mine in Arizona, USA, provides Minera Alamos with geographical diversification, reducing its exposure to political, regulatory, and operational risks associated with a single jurisdiction. Furthermore, the Copperstone mine complements Minera Alamos' existing projects, which are at different stages of development and production, creating a more balanced production profile.



The acquisition of Sabre's shares is expected to have a positive impact on Minera Alamos' overall portfolio diversification and risk management strategy. By adding the Copperstone mine to its portfolio, Minera Alamos reduces its reliance on a single project, spreading its production and cash flow across multiple projects. This diversification helps mitigate the risk of operational issues or delays at any single project. Additionally, the Copperstone mine has robust economics at much lower and more conservative gold price scenarios, adding another layer of diversification to Minera Alamos' portfolio.

In conclusion, the acquisition of Sabre's shares by Minera Alamos is a strategic move that aligns with the company's long-term investment strategy of developing low capex assets while expanding their projects' resources and pursuing complementary strategic acquisitions. The addition of the Copperstone mine to Minera Alamos' portfolio provides the company with a diversified North American gold producer platform, adding visibility to a further 150,000 oz of annual gold production in premier mining jurisdictions in North America. This acquisition is expected to provide significant synergies and contribute to Minera Alamos' long-term growth and profitability, positioning the company well for future success in the gold mining sector.