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- Argonaut Gold (TSX:AR:CA) on Thursday was downgraded to Market Perform from Outperform by BMO Capital Markets, eyeing the recent bid by Alamos Gold (AGI) to buy all issued and outstanding shares of the company.
- BMO also decreased its target price to C$0.40 on Argonaut to reflect the transaction pricing. The financial services company expected the deal to proceed as proposed.
- On Wednesday, Alamos launched a bid for Argonaut pursuant to a court-approved plan of arrangement.
- The deal would also see Argonaut's assets in the United States and Mexico will be spun out to its existing shareholders as a newly created junior gold producer, among others.
- Alamos was rated a Hold by Seeking Alpha's Quant, scoring a 3.10 out of 5 on its profitability and growth prospects.