(Updated at 10:05 a.m. ET)

*

Alamos Gold ( AGI ) to buy smaller peer Argonaut for $325 mln

*

First Quantum execs discuss investment with Chinese

officials

*

TSX up 0.2%

By Johann M Cherian

March 27 (Reuters) - Canada's main stock index rose on

Wednesday, boosted by gains in precious metals miners, while

Alamos Gold ( AGI ) was among the best performers after it announced a

deal to buy smaller rival Argonaut.

At 10:05 a.m. ET (1405 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was up 46.04 points, or 0.21%,

at 21,958.56.

The index is trading near record highs and is on track for

its second straight quarterly gains, in tandem with optimism

across developed equity markets as investors expect central

banks to lower interest rates in 2024.

"Adding to the positive price action, there remains a

healthy level of skepticism in the market, corporate earnings

have come in better than expected and the economy continues to

display remarkable resilience," said Brandon Michael, senior

analyst at ABC Funds, in Toronto.

The materials sector, which includes precious and

base metals miners and fertilizer companies, led the gains, up

1.5%, tracking higher gold and silver prices as investors

awaited a key U.S. inflation data this week.

The February data for U.S. personal consumption

expenditures, the Federal Reserve's preferred inflation gauge,

is due on Friday and could help determine the outlook for its

interest rate cuts expected later in the year.

The U.S. and Canadian markets are closed on Friday for the

Good Friday holiday.

The energy sector lost 0.7%, tracking softer crude

after data showed surging U.S. stockpiles and on signs the OPEC+

producer group is unlikely to change its output policy at a

technical meeting next week.

Company-wise, Alamos Gold ( AGI ) said it would acquire

Argonaut Gold ( ARNGF ) for $325 million in an all-stock deal.

Shares of Alamos jumped 6.8% and were on track to notch their

strongest day in more than 18 months.

First Quantum Minerals ( FQVLF ) gained 4% after Reuters

reported that executives from the miner met with Chinese

government officials last week to discuss funding and business

options involving top investor Jiangxi Copper.