Alamos Gold adds sweetener to encourage early conversion of 5.5% convertibles

By Angela McDaniels

Seattle, April 5 - Alamos Gold Inc. said it will seek approval from holders of its 5.5% convertible unsecured subordinated debentures due 2010 to amend the terms of the convertibles.

If approval is granted by at least two-thirds of debenture holders, there will be a 21-day period in which the company will offer a premium of C$3.00 per C$100 principal amount of convertibles as an incentive to convert. Additional shares are also on offer.

Currently, debenture holders receive 18.86792 common shares of Alamos Gold for each C$100 principal amount of debentures that they convert.

Under the proposed incentive, debenture holders who convert will also receive:

• Additional common shares equal in value to C$3.00 per C$100 principal amount of debentures at a price equal to the volume-weighted average trading price of the common shares for the last five trading days of the 21-day incentive conversion period; and

• A to-be-determined number of additional common shares based upon the last date of the incentive conversion period and the volume-weighted average trading price of the common shares for the last five trading days of the incentive conversion period. The number ranges from 6.3846 additional shares at a volume-weighted average trading price of C$3.96 to 0.3871 additional shares at a volume-weighted average trading price of C$25.00.

Shares of the Toronto-based gold exploration stock closed at C$9.10 on Tuesday.

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