Alkane Resources to Acquire Mandalay Resources in $358M Deal, Creating Diversified Gold and Antimony Producer

In a significant move within the mining industry, Australia’s Alkane Resources (ASX: ALK) has announced its acquisition of Canada’s Mandalay Resources (TSX: MND) in an all-share transaction valued at approximately A$559.1 million (US$358 million).
This merger aims to establish a diversified gold and antimony producer with operations spanning Australia and Sweden.

Deal Structure and Shareholder Impact

Under the terms of the agreement, Alkane will acquire all issued and outstanding common shares of Mandalay through a court-approved plan of arrangement.
Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share held.
Post-transaction, former Mandalay shareholders will own 55% of the combined entity, while existing Alkane shareholders will retain 45% ownership.

Strategic Rationale and Operational Synergies

The merged company will operate under the Alkane Resources name, maintaining its listing on the Australian Securities Exchange (ASX) and seeking a secondary listing on the Toronto Stock Exchange (TSX).
The combined entity is projected to have an implied market capitalization of approximately A$1.01 billion (US$640 million).

The merger consolidates three key mining operations: Alkane’s Tomingley Gold Project in New South Wales, Mandalay’s Costerfield gold-antimony mine in Victoria, and the Björkdal gold mine in Sweden.
Collectively, these assets are expected to produce around 160,000 gold-equivalent ounces in 2025, with projections exceeding 180,000 ounces in 2026.

Notably, the Costerfield mine contributes approximately 2,800 metric tons of antimony annually—a critical mineral used in semiconductors and military applications.
This production is particularly significant given the recent 250% surge in antimony prices in 2024, following China’s export restrictions amid global supply shortages.

Nic Earner, the current Managing Director of Alkane Resources, will lead the merged company.
The transaction has received unanimous approval from both companies’ boards and is anticipated to close in the third quarter of 2025.

This acquisition aligns with a broader trend of consolidation in the gold mining sector, driven by record-high bullion prices.
Gold recently reached an all-time high of US$3,500.05 per ounce, marking a more than 25% increase this year, fueled by geopolitical tensions and robust central bank demand.

The merger positions the new Alkane Resources as a significant player in the global mining industry, with diversified assets and a strong production outlook.
The combined expertise and resource base are expected to enhance operational efficiencies and shareholder value in the evolving commodities market.