Canadian miner Alamos Gold will sell its Turkish subsidiary for $470 million to a Middle East-based mining company, ending a years-long $1 billion legal battle, it said late on Sunday.
Alamos will sell the Turkish unit to Tümad Madencilik Sanayi, a mining company operated by conglomerate Nurol Holding.
"This transaction marks a positive outcome, allowing us to crystalize significant value for our Turkish assets, and utilize the proceeds to support the development of our portfolio of other high-return growth projects," said John A. McCluskey, president and CEO of Alamos.
"These projects are all located in North America, they are all lower cost, and they underpin one of the strongest growth profiles in our sector," McCluskey noted.
As part of the deal, Alamos said arbitration proceedings that its Netherlands units filed in 2021 against Türkiye will remain suspended, and shall be discontinued after certain contractual milestones are reached.
Alamos has had an active presence in Türkiye since 2010, according to its website. In 2019, the miner had halted construction work at its Kirazlı project in western Türkiye after the mining concessions expired and amid protests against the project.
This led to the firm filing a $1 billion claim against Türkiye for "unfair and inequitable treatment" on the project.
The deal is expected to close in the fourth quarter of 2025, Alamos said, adding that it will use the funds it receives to reduce existing debt obligations and support the projects it is developing.
These include the Phase 3+ Expansion within the Island Gold, the Lynn Lake Project and the Puerto Del Aire project in Mexico.
