Australia’s Alkane Resources Ltd (ASX: ALK) announced plans to acquire Canada’s Mandalay Resources Corp (TSX: MND) in an all-share transaction, aimed at forming a mid-tier gold and antimony producer with operations in both Australia and Sweden.
Under the terms of the agreement, Alkane will issue 7.875 of its shares for each Mandalay share, granting Mandalay shareholders a 55% stake in the combined entity.
The merger will create a company with an estimated market capitalization of A$1.01 billion ($650 million), the companies said.
The new company will operate three producing mines and aims for gold-equivalent production of around 160,000 ounces in 2025. This is expected to increase to over 180,000 ounces by 2026.
Nic Earner, the Managing Director of Alkane, will lead the merged group. The company plans to retain its ASX listing and pursue a TSX listing.
The deal is expected to improve trading liquidity and enhance the company’s market valuation. Completion of the transaction is expected in the third quarter of 2025, pending shareholder and regulatory approvals.
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