Alkane and Mandalay merge

Alkane Resources (ASX: ALK) and Canada’s Mandalay Resources have finalised their merger, creating a dual-listed gold and antimony producer with operations in Australia and Sweden.

The company’s three cash-generating assets are located in premier mining jurisdictions and are each supported by robust organic growth opportunities, according to Alkane.

The combined company is an established 160,000oz gold equivalent producer, with plans to rise to over 180,000oz gold equivalent in 2026.

Alkane managing director Nic Earner says this merger represents 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.”

Mandalay former president and chief executive and Alkane new non-executive director Frazer Bourchier comments on the merger.

“We are proud to have successfully completed this transaction,” he said.

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

“I sincerely thank our shareholders and the entire Mandalay team for their continued support, and I look forward to continuing to deliver shareholder value as a director of Alkane.”

Under the terms of the arrangement, Mandalay shareholders are entitled to receive 7.875 fully paid ordinary shares of Alkane for each Mandalay share held.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of the Alkane shares. Listing is subject to Alkane fulfilling all the customary requirements of the TSX.