An expanded gold-antimony producer is born

Alkane Resources has successfully completed its merger with Canadian miner Mandalay Resources.

The deal was first announced in April this year, and involved Alkane acquiring all of the issued and outstanding common shares of Mandalay. In return, Mandalay shareholders were granted fully paid shares of Alkane at a ratio of 7.875 to 1.

The combined company will continue operating as Alkane Resources. It will remain listed on the ASX and headquartered in Perth. A further listing on the Toronto Stock Exchange has been conditionally approved, and shares are expected to begin trading there from August 8.

The transaction has been described as “transformative” in creating a dual-listed gold and antimony producer, operating in Victoria, New South Wales, and Skelleftea, Sweden.

Alkane managing director and chief executive officer Nic Earner said the merger represented a significant step forward for both companies.

“By combining our complementary portfolios, we have created a stronger, more resilient platform with the scale and financial flexibility to pursue long-term growth,” he said. “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.”

Former president and chief executive officer of Mandalay, and new non-executive director of Alkane, Frazer Bourchier added that the deal would have positive impacts on the combined company’s rating in the market.

“With a diversified production base, broader exploration pipeline, and enhanced trading liquidity, the combined company is well positioned for a market re-rating,” he said.

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