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.
Shares in Alkane Resources rose to 3.3% to A$0.76, as of 0108 GMT, outperforming an 0.1% fall in the broader mining sub-index.
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.
The deal includes Mandalay’s Costerfield mine, which produces about 2,800 metric tons of antimony annually – a critical mineral used in semiconductors and military applications that has seen prices surge 250% in 2024 following China’s ban amid an ongoing global supply shortage.
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.
The Alkane-Mandalay transaction, unanimously approved by both boards, is expected to close in the third quarter of 2025.
While maintaining its primary listing on the Australian Securities Exchange, the combined firm will seek a secondary listing on the Toronto Stock Exchange.
Current Alkane Managing Director Nic Earner will lead the Australian-headquartered merged entity.
Source: Reuters.com