Australia’s Alkane Resources (ASX:ALK) has announced it will acquire Canadian miner Mandalay Resources (TSX: MND) in an all-share transaction valued at approximately A$560 million, or US$358 million. The deal, made through a court-approved plan of arrangement, will combine the two companies into a single diversified producer of gold and antimony, operating across Australia and Sweden.
According to the terms released, Alkane will purchase all issued and outstanding shares of Mandalay. Shareholders of Mandalay will receive 7.875 Alkane shares for every Mandalay share they hold. Once the transaction is finalized, Mandalay’s shareholders will own 55% of the new company, leaving Alkane’s existing shareholders with a 45% stake. The newly merged entity will keep the Alkane Resources name and will continue its listing on the Australian Securities Exchange. It also plans to seek a listing on the Toronto Stock Exchange, broadening its presence across two major mining markets.
The merged company is expected to have an implied market capitalization of around A$1.01 billion, or approximately US$640 million. Production projections for the new Alkane Resources stand at 160,000 gold-equivalent ounces in 2025. That figure is forecast to rise to over 180,000 ounces in 2026, drawn from its three primary operations: Alkane’s Tomingley gold project in New South Wales, Mandalay’s Costerfield gold-antimony mine in Victoria, and the Björkdal gold mine located in Sweden.
The boards of both companies unanimously approved the merger. Their decision comes during a period of heightened consolidation across the gold mining sector, fueled by record-high bullion prices. Gold recently reached an all-time high of US$3,500.05 per ounce, representing a rise of over 25% so far this year. Factors such as ongoing geopolitical instability and aggressive gold purchases by central banks have helped push prices upward, driving companies to seek scale and operational synergies through mergers and acquisitions.
The Alkane-Mandalay agreement follows several other major transactions in the industry. Earlier this year, Equinox Gold completed its C$2.6 billion acquisition of Calibre Mining. Not long after, Spartan Delta agreed to a A$2.4 billion takeover offer from Australia’s Ramelius Resources. South Africa’s Gold Fields made a A$3.3 billion bid for Gold Road Resources, though that attempt was ultimately rejected. Just last week, Northern Star Resources finalized its A$5 billion takeover of De Grey Mining.
Leadership for the new Alkane Resources will be provided by Nic Earner, who currently serves as Alkane’s managing director. The companies expect the transaction to close in the third quarter of 2025, subject to shareholder approvals, regulatory consents, and other customary closing conditions.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
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