Alkane Resources (ASX:ALK) and Mandalay Resources Corporation (TSX:MND) have agreed to a merger, creating a significant player in gold and antimony production. The combined entity boasts a pro-forma cash balance of $188 million (as of March 31, 2025), positioning it for both organic and inorganic growth. Under the terms, Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share held. Upon completion, former Mandalay shareholders will own 55%, and existing Alkane shareholders will hold 45% of the combined company’s outstanding shares on a diluted basis.
The merged company plans to invest in exploration across its Australian and Swedish mines while pursuing growth opportunities, including the Boda-Kaiser copper-gold project. Alkane’s Managing Director, Nic Earner, emphasized that the merger elevates the company, combining assets with proven production and exploration potential. Mandalay’s CEO, Frazer Bourchier, highlighted the opportunity for shareholders, aligning with their vision to become a mid-tier gold and antimony producer. The transaction, valued with an implied market capitalization of $1.013 billion, pairs Alkane’s Tomingley Gold and Northern Molong Porphyry projects with Mandalay’s Costerfield Gold-Antimony Mine and Björkdal Gold Mine.