The proposed merger of equals between Alkane Resources and Mandalay Resources has received approval from the Supreme Court of British Columbia under the Business Corporations Act (British Columbia).
The transaction has also been approved by Alkane shareholders at a general meeting held on July 28 and Mandalay shareholders at a general meeting also held on July 28.
These three key approvals follow the Foreign Investment Review Board approving the scheme under the Foreign Acquisitions and Takeovers Act 1975 in June.
“The merger with Mandalay has now cleared all conditions for completion and will subsequently close on August 5,” Alkane managing director and chief executive officer Nic Earner said.
“Work on integration of the two companies has been underway since the original merger announcement, with the integration of our board and management teams we expect minimal impact on the operations in the coming months.
“Alkane is set to become a three mine, multi jurisdiction gold miner with antimony exposure, strong cash flow generation, a very solid balance sheet and great internal growth opportunities.”
Originally announced in April, the proposed merger will see Alkane acquire all the issued and outstanding common shares of Mandalay following a court-approved plan of arrangement under the Business Corporations Act (British Columbia).
Mandalay shareholders will receive 7.875 ordinary shares of Alkane for each ordinary share of Mandalay held prior to the effective time of the transaction.
Once the merger is complete, former Mandalay shareholders and existing Alkane shareholders will own approximately 55 per cent and 45 per cent of the outstanding ordinary shares in the combined company, respectively, on an undiluted basis.
By merging both companies, a diversified Australian-centric gold and antimony producer will be created.
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