Connect with us

Hi, what are you looking for?

Deluxe Investment GroupDeluxe Investment Group

Editor's Pick

Alkane-Mandalay Merger Paves Way for New Aussie Gold and Antimony Producer

Alkane Resources (ASX:ALK,OTC Pink:ALKEF) and Mandalay Resources (TSX:MND,OTCQB:MNDJF) have announced a merger of equals to form a new gold and antimony producer.

In a joint release on Monday (April 28), the companies said former Mandalay shareholders and existing Alkane shareholders will respectively own approximately 55 percent and 45 percent of the combined entity.

The new company will focus on Australia-based assets, such as Alkane’s Tomingley gold project in New South Wales and Mandalay’s Costerfield gold-antimony mine, which is located in Victoria.

Also included in Mandalay’s portfolio is the Björkdal underground gold mine in Sweden.

“Mandalay’s two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside,” said Alkane Managing Director Nic Earner.

“The combination of assets, leadership, and supportive long-term shareholders enhances our scale and financial strength, and positions us well to continue to pursue additional growth opportunities.’

Tomingley is Alkane’s flagship asset, and consists of the Tomingley gold operations, the Tomingley gold extension project, the Peak Hill gold mine and other exploration licences.

The Tomingley gold extension project is geared at extending the life of the Tomingley gold operations. The extension includes the San Antonio and Roswell resources, and shows the potential to produce 100,000 ounces of gold in 2025.

For its part, Mandalay’s Costerfield operation produced 54,805 gold equivalent ounces in 2024, or 43,346 ounces of gold and 1,282 tonnes of antimony. Antimony is a critical mineral used in key sectors like defence.

The companies project that the combined entity will produce about 160,000 gold equivalent ounces in 2025, with that amount rising to over 180,000 gold equivalent ounces the following year.

The transaction has been unanimously approved by both company boards and is expected to close in Q3. The all-share transaction is valued at AU$559.1 million, and the new entity’s implied market cap is AU$1.01 billion.

The combined company will keep the ASX as its primary listing and pursue a secondary listing on the TSX.

“We are excited to have found a like-minded partner committed to the same principles,” said Mandalay President and CEO Frazer Bourchier. “The transaction aligns with our vision to create a mid-tier gold and antimony producer with mines in premier operating jurisdictions and with our strategy for continued growth.”

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

Keep reading…Show less

This post appeared first on investingnews.com

Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!



    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Latest News

    In the final three weeks of the presidential race, former president Donald Trump and his advisers have attacked one particular foe more than three...

    Latest News

    “And there’s very few states that benefit like you do from fracking. I mean, you have 500,000 jobs.” — Former president Donald Trump, remarks...

    Latest News

    A former deputy Palm Beach County sheriff who fled to Moscow and became one of the Kremlin’s most prolific propagandists is working directly with...

    Disclaimer: Deluxeinvestmentgroup.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 deluxeinvestmentgroup.com