- Mandalay Resources (TSX:MND) and Alkane Resources (ASX:ALK) have finalized their merger of equals, with shares of the resulting company expected to trade under the Alkane name and ticker on the TSX by August 28
- The transaction will allow Alkane to deliver an expected 160,000 ounces of gold equivalent in fiscal 2025, increasing to 180,000 ounces in 2026
- Alkane Resources stock last traded at A$0.735 and has added 73.07 per cent year-over-year
Mandalay Resources (TSX:MND) and Alkane Resources (ASX:ALK) have finalized their previously announced merger of equals, with shares of the resulting company expected to trade under the Alkane name and ticker on the TSX by August 28.
This content has been prepared as part of a partnership with Mandalay Resources Corp. and Alkane Resources Limited, and is intended for informational purposes only.
Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share held, granting them exposure to a gold and antimony producer operating in top jurisdictions, including:
- Mandalay’s Costerfield mine in Victoria, Australia, which is guiding for production of up to 39,000 ounces of gold and 1,150 tons of antimony in 2025, with a life of mine currently estimated at 3.5 years.
- Mandalay’s Björkdal mine in Skelleftea, Sweden, which is expected to yield up to 46,000 ounces of gold in 2025, with a life of mine estimated at 9 years.
- Alkane’s Tomingley gold project in New South Wales, Australia, which produced 57,217 ounces in 2024 and is currently being developed to operate beyond 2030.
The transaction will allow Alkane to deliver an expected 160,000 ounces of gold equivalent in fiscal 2025, increasing to 180,000 ounces in 2026, with approximately A$218 million in pro forma cash in the bank to pursue additional growth opportunities.
The new board overseeing Alkane’s growth includes three former Mandalay directors, Brad Mills, Frazer Bourchier and Dominic Duffy, two existing Alkane directors, Ian Gandel and Nic Earner, and a new independent chair, Andy Quinn, a chartered mining engineer and decorated investment banking and mining industry veteran.
According to Tuesday’s news release, Mandalay shares are scheduled to be delisted from the TSX on August 6. Investors have collected a 6.16 per cent return on the day, growing to 113.66 per cent year-over-year and 159.44 per cent since 2020, with shares last trading at C$5.08 as of 12:35 pm ET.
Leadership insights
“This merger represents a significant step forward for both companies,” Nic Earner, Alkane’s managing director and chief executive officer (CEO), said in a statement. “By combining our complementary portfolios, we have created a stronger, more resilient platform with the scale and financial flexibility to pursue long-term growth. I am pleased to welcome our new shareholders and the Mandalay team as we move forward together, focused on delivering sustainable production and long-term value.”
“We are proud to have successfully completed this transaction,” added Frazer Bourchier, former president and CEO of Mandalay Resources, and new non-executive director of Alkane. “With a diversified production base, broader exploration pipeline and enhanced trading liquidity, the combined company is well-positioned for a market re-rating. I sincerely thank our shareholders and the entire Mandalay team for their continued support, and I look forward to continuing to deliver shareholder value as a director of Alkane.”
About Alkane Resources
Alkane is growing into one of Australia’s top gold and copper producers. The company has been in production since 2014 and has plans in place to extend operations to 2030 and beyond.
Alkane Resources stock (ASX:ALK) last traded at A$0.735 and has added 73.07 per cent year-over-year.
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