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NEWS-LEADING DEVELOPMENTS 6 E&MJ; • OCTOBER 2017 www.e-mj.com U.S. Region will continue to finance its own capital, service the financing costs associated with its purchase, and con- tribute significant additional cash flow to Sibanye-Stillwater's results. In its report of its six-month financial results to June 30, Sibanye-Stillwater not- ed that Stillwater had contributed $28 million in operating profit to its bottom line. The report also stated that Stillwater's Blitz mining project adjacent to its Stillwa- ter mine will begin commissioning ahead of schedule before year-end 2017. Stillwater currently produces about 550,000 oz/y of palladium and plati- num from its Stillwater and East Boulder mining operations. The Blitz project is an extension of the Stillwater mine and is expected to add about 300,000 oz/y to its production by 2021 or 2022, when it reaches steady-state production. Ad- ditionally, production and processing of Blitz ore is expected to reduce unit oper- ating costs of the Stillwater mine. Stillwater also operates its Columbus Metallurgical Complex, including a smelt- er and base metals refinery, at Columbus, Montana. In addition to processing con- centrates from the mines, the complex includes a major PGM recycling operation, recovering palladium, platinum, and rho- dium from spent catalytic converters and other industrial sources. In 2016, the com- pany recycled 668,000 oz of these PGMs. Regarding Sibanye-Stillwater's new name, the company's CEO Neal Froneman commented that the name change repre- sented a natural step in the evolution of the group from a gold mining company with its asset base entirely in South Africa into a significant international precious metals company. Sibanye entered the PGM business when it acquired Aquarius Platinum in April 2016 and the Rustenburg Operations of Anglo American Platinum in October 2016, both with operations in South Africa. Alamos Acquires Richmont; Ontario Properties Sold to Monarques In a friendly transaction, Alamos Gold will acquire Richmont Mines in an all-share transaction. Under the terms of the agree- ment, Richmont shareholders will receive 1.385 Alamos shares. The exchange ratio implies consideration of C$14.20 per Rich- mont common share, based on the closing price of Alamos common shares on the Toronto Stock Exchange (TSX) on Septem- ber 8. This represents a 22% premium to Richmont's closing price and implies a total equity value of approximately $770 million. Upon completion of the transaction, existing Alamos and Richmont sharehold- ers will own approximately 77% and 23% of the pro forma company, respectively. Alamos Gold will now own Island Gold, a long-life, high-grade underground mine with growing production and first quartile cash costs, located in Ontario, Canada. The transaction solidifies Alamos' posi- tion as a leading intermediate gold pro- ducer. The combined entity is expected to have diversified gold production of more than 500,000 ounces (oz) in 2017, an- chored by three core, low-cost, long-life operations in Canada and Mexico. "Our combination with Richmont re- flects our core strategy of creating long- term value through operating high-quality assets," said John McCluskey, president and CEO of Alamos. "The Island Gold mine is a high-quality asset in every re- spect. We see excellent potential for re- serve and production growth from one of the highest grade, lowest cost gold mines in Canada. With this production base, growth, and balance sheet strength, Al- amos will be the leading intermediate producer and presents a compelling re- valuation opportunity for both Alamos and Richmont shareholders." Richmont is selling the Beaufor mine, the Camflo mill and the Wasamac de- velopment project located in Quebec to Monarques Gold. In consideration, Monarques will issue a number of shares equating to 19.9% of its undiluted issued and outstanding common shares. In addi- tion, the company will assume responsi- bility for the future amount payable to the Ministry of Energy and Natural Resources for the Quebec assets, including the Mo- nique mine rehabilitation plans, estimat- ed at approximately $5 million, should the facilities be closed. Lastly, the following net smelter return royalties will be payable by Monarques to Richmont: 1.5% for the Wasamac proper- ty, of which 0.5% can be bought back for $7.5 million; 1% on Richmont's claims in the Camflo property; and 1% on the Beaufor property once Monarques has produced 100,000 oz of gold, subse- quent to the close of the transaction. "This transformative transaction is a major milestone for Monarques, po- sitioning the company to achieve the coveted status of gold producer," said Jean-Marc Lacoste, president and CEO of Monarques. "We are very pleased to have Richmont as a significant shareholder, and we look forward to benefitting from their long history and experience as a suc- cessful underground gold miner. "We are also extremely pleased to wel- come Monarques' 150 future employees, with whom we look forward to having a suc- cessful and rewarding relationship with. Monarques will have a much larger profile following the transaction, with a strong portfolio of mining assets in the Abitibi that includes the Beaufor mine, the Cam- flo and Beacon mills, the Wasamac and Croinor Gold advanced projects, and eight other high-quality exploration projects." The Stillwater mine, as seen from the top of a mountain, produces about 550,000 oz/y of platinum and palladium. (Continued on p. 30)