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Highlights
Alkane and Mandalay to merge in an all-share transaction valued at AU$559.1 million.
The combined entity will have a market capitalisation of AU$1.01 billion and aims for gold-equivalent production growth by 2026.
Transaction part of a broader trend of consolidation in the global gold mining sector.
Australia’s Alkane Resources (ASX:ALK) announced on Monday it will acquire Canada's Mandalay Resources (MND.TO) through an all-share agreement valued at AU$559.1 million ($357.8 million). The merger will result in the creation of a diversified gold and antimony producer with operations across Australia and Sweden.
Once combined, the new entity will have an estimated market capitalisation of AU$1.01 billion. Production is forecast to reach 160,000 gold-equivalent ounces in 2025 and exceed 180,000 ounces by 2026, sourced from three established mining operations — Alkane’s Tomingley mine, Mandalay’s Costerfield mine in Australia, and the Björkdal mine in Sweden.
Under the terms of the agreement, Mandalay shareholders will receive 7.875 Alkane shares for every Mandalay share they own. This exchange will grant Mandalay shareholders a 55% stake in the merged company.
The merger reflects an ongoing wave of consolidation within the global gold sector, as miners seek to leverage elevated bullion prices. Last week, gold touched a record high of $3,500.05 per ounce, driven by increased geopolitical tensions and heightened demand from central banks.
Other significant deals have recently shaped the sector. Northern Star Resources (ASX:NST) completed its AU$5 billion acquisition of De Grey Mining (ASX:DEG) last week. Earlier this year, Spartan Delta (SDE.TO) agreed to a AU$2.4 billion takeover by Ramelius Resources (ASX:RMS), while Gold Fields (GFIJ.J) of South Africa proposed a AU$3.3 billion bid for Gold Road Resources (ASX:GOR), although that offer was declined.
The Alkane-Mandalay agreement has received unanimous approval from both companies' boards. The transaction is expected to close in the third quarter of 2025, pending customary regulatory and shareholder approvals. Alkane also plans to seek a listing for the newly formed company on the Toronto Stock Exchange (TSX).
Nic Earner, currently Managing Director of Alkane, will lead the newly combined, Australian-headquartered company. The company is poised to benefit from potential inclusion in the ASX 300 index following the merger.
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