Alkane and Mandalay Merge to Create Dominant Gold and Antimony Producer

Alkane Resources Limited and Mandalay Resources Corporation have agreed to a merger of equals to combine their resources and create a major player in the gold and antimony mining sector. The merger, structured as a plan of arrangement, will see Alkane acquiring all common shares of Mandalay, with shareholders of Mandalay receiving 7.875 Alkane shares for each Mandalay share. Post-merger, the combined entity will operate as Alkane Resources and be listed on both the ASX and TSX exchanges. This merger aims to produce 160,000 gold-equivalent ounces in 2025, increasing to over 180,000 ounces by 2026. The combined company's strong cash position of A$188/C$167 million as of March 2025 will bolster its growth strategy. The strategic move will benefit from the established mines: Tomingley, Costerfield, and Björkdal, positioned in prime jurisdictions of Australia and Sweden. Leadership will be predominantly headed by Alkane's Nic Earner, with a balanced board representation from both companies. The merger is expected to close in Q3 2025, contingent on shareholder and regulatory approvals.