Australia’s Alkane Resources Ltd (ASX:ALK) will acquire Canada’s Mandalay Resources Corp (TSX:MND) in an all-share deal, to create a diversified mid-tier gold and antimony producer with operations in Australia and Sweden, the companies said on Monday.
Under the agreement, Alkane will issue 7.875 of its shares for each Mandalay share, giving Mandalay shareholders about 55% ownership of the combined company.
The implied market capitalization of the combined company is estimated at A$1.01 billion ($650 million), the companies said.
The new company will operate three producing mines and target gold-equivalent production of around 160,000 ounces in 2025, increasing to more than 180,000 ounces in 2026.
Alkane Managing Director Nic Earner will lead the combined group, which plans to maintain its ASX listing and seek a TSX listing.
The deal is expected to enhance trading liquidity and support a potential valuation re-rate, according to the companies.
Completion is targeted for the third quarter of 2025, pending shareholder and regulatory approvals.
