Alkane And Mandalay Combine In A $707 Million 'Merger Of Equals'

Australia's Alkane Resources ALKEF and Canada's Mandalay Resources MNDJF have announced a "merger of equals "in an all-share transaction valued at approximately AU$1.01 billion ($707 million), creating a diversified gold and antimony producer with global reach.

The newly combined company will retain the Alkane name and remain listed in Australia, but it will seek a dual listing on the Toronto Stock Exchange.

"The transaction will take Alkane to a new level, bringing together two companies with complementary assets and a shared vision for growth," said Nick Earner, Alkane Managing Director. "Mandalay's two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside."

The merger brings together three producing assets across premier mining jurisdictions. Alkane contributes to the Tomingley gold mine in New South Wales, which is currently ramping up production after an expansion.

Mandalay adds its Costerfield gold-antimony mine in Victoria—Australia's only antimony producer—and the Björkdal underground gold mine in Sweden.

The combined group is projected to produce approximately 160,000 gold-equivalent ounces in 2025, increasing to over 180,000 ounces in 2026. Additionally, all-in sustaining costs (AISC) are forecast to drop from AU$2,750/oz in 2025 to AU$2,160/oz in 2026, reflecting improved scale and efficiency.

Frazer Bourchier, Mandalay's President and CEO, noted the merger "presents a compelling opportunity for Mandalay shareholders to accelerate value creation through increased capital markets scale, liquidity and a growing diversified asset base."

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"The transaction aligns with our vision to create a mid-tier gold and antimony producer with mines in premier operating jurisdictions and with our strategy for continued growth," he said.

Alkane's Earner will lead the new entity, headquartered in Australia, while industry veteran Andrew Quinn will lead the board, which comprises three directors nominated by Mandalay and two by Alkane.

The pro forma balance sheet includes a robust cash position of AU$188 million ($120 million) as of March 31, 2025, allowing it to pursue further organic growth and strategic opportunities, including advancing Alkane's Boda-Kaiser copper-gold project.

Mandalay shareholders will receive 7.875 Alkane shares for each share they hold, resulting in a 55% stake in the new company, while Alkane shareholders will retain 45%. The transaction has the unanimous support of both boards and major shareholders and is subject to regulatory, shareholder, and court approvals.

The companies expect the deal to close in the second half of 2025, pending regulatory approvals.

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