Merger of Equals: Alkane to Issue Shares to Acquire Mandalay in $1B Deal
Alkane Resources has moved forward with its planned merger with Mandalay Resources, scheduling shareholder meetings for late July to approve the deal that would create a diversified Australian-focused gold and antimony producer.
- Shareholder meetings set for 28 July 2025 in Australia and Canada
- Merger aims to combine three operating mines and strengthen balance sheet
- Transaction requires court, regulatory, and Foreign Investment Review Board approvals
- Expected completion targeted for early August 2025
- Joint global marketing campaign underway to attract investor support
Merger Progresses to Shareholder Vote
Alkane Resources Ltd (ASX, ALK) has announced a significant update on its proposed merger with Canadian miner Mandalay Resources Corporation (TSX, MND). Both companies have issued notices for shareholder meetings to be held on 28 July 2025, marking a critical step toward finalising what they describe as a "merger of equals." This transaction, first unveiled in April, aims to create a stronger, diversified mining entity focused on gold and antimony production.
The meetings will seek shareholder approval for the issuance of Alkane shares to Mandalay shareholders, a key condition for the deal’s completion. The merger remains subject to several other approvals, including from the Foreign Investment Review Board and the Supreme Court of British Columbia, reflecting the cross-border complexity of the transaction.
Strategic Rationale and Market Impact
The combined company is expected to operate three mines and benefit from a robust balance sheet, enhancing its capital markets profile and liquidity by maintaining listings on both the ASX and the TSX. Alkane’s Managing Director Nic Earner and Mandalay’s CEO Frazer Bourchier have actively marketed the merger across major financial centres including Perth, Sydney, Toronto, and New York, signaling strong investor interest.
Alkane brings to the table its Tomingley Gold Operations in New South Wales, which has been producing since 2014 with plans extending beyond 2030, alongside promising exploration projects such as the Boda gold-copper discovery. Mandalay complements this with its own portfolio, creating a more diversified and resilient mining group positioned to capitalize on both gold and antimony markets.
Next Steps and Potential Challenges
If shareholder and regulatory approvals are secured, the transaction is anticipated to close in early August 2025. However, the deal carries execution risks typical of cross-border mergers, including satisfying all closing conditions and obtaining final court approval. Investors will be watching closely for the outcomes of the July meetings and any regulatory feedback.
Looking ahead, the merged entity’s ability to integrate operations and deliver on exploration potential will be key to justifying the strategic rationale behind the merger. The combined company aims to leverage its enhanced scale and diversified asset base to strengthen its position in the competitive gold and antimony sectors.
Bottom Line?
The July shareholder votes will be pivotal in determining whether Alkane and Mandalay can unite to reshape Australia’s gold and antimony mining landscape.
Questions in the middle?
- Will both Alkane and Mandalay shareholders approve the merger at their respective meetings?
- How will the combined company manage integration risks across different jurisdictions?
- What impact will the merger have on production targets and exploration timelines?