The proposed merger of equals between Alkane Resources and Mandalay Resources has received approval from the Foreign Investment Review Board (FIRB).
Alkane confirmed the Federal Government has no objection to the transaction under the Foreign Acquisitions and Takeovers Act 1975.
The FIRB approval condition contained in the definitive arrangement agreement between Alkane and Mandalay has now been satisfied, and follows Sweden’s Inspectorate of Strategic Products approving the deal last week.
“Detailed information on the merger transaction is now available, together with voting instructions for the Alkane and Mandalay shareholder meetings to be held on July 28,” Alkane managing director and chief executive officer Nic Earner said.
“The recent satisfaction of the FIRB and other regulatory approvals represent further important milestones and de-risking events for the progression of the merger.
“I encourage Alkane shareholders to carefully read the information made available by Alkane, and to vote in favour (whether by proxy or in person) of the transaction resolutions at the upcoming general meeting of Alkane shareholders.”
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.
The proposed deal has been unanimously approved by the Alkane and Mandalay boards, with directors from both companies recommending that shareholders vote in favour of the transaction.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
