10:37 AM EST, 03/06/2020 (MT Newswires) -- Alio Gold (ALO.TO) grew 2.2% to $0.92 apiece Friday after saying that it is set to sell its wholly-owned subsidiary, Molimentales, which owns a 100% interest in the San Francisco mine and the surrounding mineral concessions to Magna Gold (MGR.V).

Under the definitive share purchase agreement, Alio Gold will receive 9.7 million shares of Magna upon closing, or near 19.9% of the Magna shares, and an additional $5 million in cash within 12 months of closing.

The gold mining company, together with Magna, expects the transaction to close in March 2020.

CEO Mark Backens said in a statement: "The transaction transfers all current assets and liabilities associated with the property and allows Alio Gold to focus time and resources on more value enhancing opportunities at the Florida Canyon Mine, our core asset."

Price: 0.92, Change: +0.02, Percent Change: +2.22