Alkane to acquire Mandalay Resources in $358M deal

Australia’s Alkane Resources (ASX: ALK) will acquire Canada’s Mandalay Resources (TSX: MND) in an all-share deal valued at almost A$560 million ($358 million), creating a combined diversified gold and antimony producer.

Under a court-approved plan of arrangement, Alkane will buy all issued and outstanding common shares of Mandalay. Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share held. After the transaction, former Mandalay shareholders will own 55% of the combined company, with existing Alkane shareholders holding 45%.

The merged entity will operate under the Alkane Resources name, maintain its Australian Securities Exchange (ASX) listing, and seek a listing on the Toronto Stock Exchange (TSX). It will have an implied market capitalization of A$1.01 billion ($640 million) and expects to produce 160,000 gold-equivalent ounces in 2025, rising to more than 180,000 ounces in 2026 from three operating mines: Alkane’s Tomingley project and Mandalay’s Costerfield mine in Australia, and Björkdal mine in Sweden.

The tie-up, unanimously approved by both companies’ boards, comes amid a wave of consolidation in the gold sector, driven by record bullion prices. Gold hit a record $3,500.05 per ounce last week, up more than 25% this year on the back of geopolitical tensions and strong central bank demand.

Recent deals include Equinox Gold’s C$2.6 billion acquisition of Calibre Mining in February. Spartan Delta (TSX: SDE) agreed to a A$2.4 billion takeover by Australia’s Ramelius Resources (ASX: RMS) less than a month later. South Africa’s Gold Fields (JSE, NYSE: GFI) made a A$3.3 billion bid for Gold Road Resources (ASX: GOR), though it was rejected.

Last week, Northern Star Resources (ASX: NST) completed an A$5 billion acquisition of De Grey Mining.

Nic Earner, Alkane’s current managing director, will lead the merged company. The transaction is expected to close in the third quarter of 2025.