07:47 AM EDT, 07/15/2024 (MT Newswires) -- Alamos Gold ( AGI ) said Monday that it eliminated more than half of the Argonaut Gold ( ARNGF ) 's hedge book and associated mark-to-market liability, providing Alamos with increased exposure to rising gold prices.

Alamos said it received US$116 million by delivering 49,384 ounces in 2025 under a gold sale prepayment agreement.

The company used the proceeds eliminate gold forward purchase contracts previously entered into by Argonaut totaling 179,417 ounces in 2024 and 2025 with an average price of US$1,838 per ounce.

Following the closing of Alamos' takeover of Argonaut, Alamos said it inherited Argonaut's hedge book which included gold forward purchase contracts totaling 329,417 ounces between 2024 and 2027 at prices ranging from US$1,821 to US$1,860 per ounce.

Alamos said it will continue to review opportunities to unwind the remaining Argonaut hedge book totaling 150,000 ounces in 2026 and 2027.

"This transaction has significantly enhanced our exposure to rising gold prices on attractive terms, most notably in the near term," said John McCluskey, Alamos' president and CEO. "With the majority of the Argonaut hedge book now eliminated, we are even better positioned to capitalize on the favorable outlook for gold."

Alamos' share price rose 0.7% at last look to US$17.76 in NYSE pre-market trading after gaining 0.6% last Friday to $24.02 on the TSX.