Australia’s Alkane Resources will acquire Canada’s Mandalay Resources in an all-share deal valued at A$559.1 million ($357.8 million), the companies said on Monday, creating a combined diversified gold and antimony producer.
The merged entity will have an implied market capitalisation of A$1.01 billion and expects to produce 160,000 gold-equivalent ounces in 2025, rising to over 180,000 ounces in 2026 from three established mines – Alkane’s Tomingley, Mandalay’s Costerfield mine in Australia and Björkdal mine in Sweden.
Under the transaction, Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share, giving them 55% ownership of the combined entity.
The tie-up joins a wave of consolidation in the global gold sector, with miners capitalising on soaring bullion prices. Gold scaled a record $3,500.05 per ounce last week, up more than 25% on geopolitical tensions and strong central bank demand. GOL/
Last week Northern Star Resources completed an A$5 billion acquisition of De Grey Mining.
In March, Australia’s Spartan Delta agreed to a A$2.4 billion takeover by Ramelius Resources, and South Africa’s Gold Fields made a A$3.3 billion bid for Gold Road Resources, however that was rejected.
The Alkane-Mandalay transaction, unanimously approved by both boards, is expected to close in the third quarter of 2025, with Alkane applying for TSX listing of the combined entity.
Current Alkane Managing Director Nic Earner will lead the Australian-headquartered company, which expects to benefit from potential ASX 300 index inclusion.
($1 = 1.5623 Australian dollars)
Reuters
