UPDATE: BMO Capital Lowers PT on Aurizon Mines on Dropped Alamos Gold Bid

In a report published Wednesday, BMO Capital Markets analyst Brian Quast reiterated an Underperform rating on Aurizon Mines

, but slightly lowered the price target from $4.65 to $4.50. In the report, Quast noted, “Alamos Gold (AGI.T, Outperform, $21 target price) announced that it is dropping its hostile bid for Aurizon Mines, which leaves only the friendly bid from Hecla Mining (HL.N, Market Perform, $7 target price, covered by Andrew Kaip) on the table...Alamos announced that it will not extend its offer for Aurizon, which expired today at 5pm. Furthermore, due to the $28M break fee that would be payable to Hecla Mining, the conditions to its offer have not been met, and therefore Alamos will not take up any Aurizon shares that are tendered to its offer. With Alamos walking away from the acquisition, the potential for a sweeter bid for Aurizon is also largely gone. Consequently, BMO Research is revising its target price for Aurizon to the current value of the Hecla bid, which is approximately $4.50.” Aurizon Mines closed on Tuesday at $4.30.