Alkane Merges with Mandalay to Form Growing Gold Producer
Deal News | Apr 29, 2025 | Globenewswire
Alkane Resources Limited and Mandalay Resources Corporation have announced a merger of equals. This transaction sees Alkane acquiring all outstanding shares of Mandalay. Post-transaction, the combined company will operate under Alkane Resources, remain listed on ASX, and will seek a TSX listing. Mandalay shareholders will receive 7.875 Alkane shares per Mandalay share held. The merger, creating a powerful platform with a portfolio of three operating mines, aims to achieve a combined gold equivalent production of approximately 160,000 ounces in 2025 and over 180,000 ounces in 2026. The merged entity is set to gain from increased scale, liquidity, and valuation in capital markets. Nic Earner, CEO of Alkane, will lead the entity from the headquarters in Perth, Australia.
Sectors
- Mining
- Finance
Geography
- Australia – Alkane Resources is based in Australia, and one of the key operating mines, Tomingley, is located there.
- Canada – Mandalay Resources is a Canadian company, and the transaction requires approval under the Business Corporations Act of British Columbia.
- Sweden – Mandalay operates the Björkdal gold mine in Sweden, highlighting the article's connection to this region.
Industry
- Mining – The article discusses a merger between two companies involved in the mining sector, focusing on gold and antimony production.
- Finance – The merger includes financial evaluations, share exchanges, and strategic planning which are part of corporate finance activities.
Financials
- 188 million AUD – Pro forma cash balance of the combined entity as of March 31, 2025, to support growth.
- 1,013 million AUD – Implied market value estimation of the combined company.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Alkane Resources Limited | Acquiring Company | Company | An Australian gold production company that will acquire Mandalay Resources in a merger. |
| Mandalay Resources Corporation | Acquired Company | Company | A Canadian company with gold and antimony assets in Australia and Sweden, involved in a merger with Alkane. |
| Nic Earner | CEO of the Combined Entity | Person | Alkane's current CEO, who will lead the merged company. |
| Frazer Bourchier | President and CEO of Mandalay | Person | Current President and CEO of Mandalay, playing a key role in the merger discussions. |
| GenCap Mining Advisory Ltd. | Financial Advisor | Company | Provided an independent fairness opinion for Mandalay in the transaction. |
| Haywood Securities Inc. | Financial Advisor | Company | Exclusive financial advisor for Mandalay Resources for this transaction. |