Tomingley
Australia's Alkane Resources and Canada’s Mandalay Resources have agreed to merge in an all-share transaction valued at about A$1.01-billion (C$898-million), creating a diversified gold and antimony producer with operations in Australia and Sweden.
The “merger of equals” will see Alkane acquire all issued and outstanding shares of Mandalay via a court-approved plan of arrangement. Under the deal, Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share held. Upon completion, former Mandalay shareholders will own about 55% of the combined entity, with Alkane shareholders retaining the remaining 45%.
The merged company will continue under the Alkane name, remain listed on the ASX, and is seeking a listing on the TSX.
“This transaction will take Alkane to a new level, bringing together two companies with complementary assets and a shared vision for growth,” said Alkane MD Nic Earner. “Mandalay’s two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside.”
The combination brings together the Tomingley gold mine in New South Wales – currently ramping up after a major expansion – with Mandalay’s Costerfield gold-antimony mine in Victoria and the Björkdal gold mine in Sweden. The new entity is forecast to produce about 160 000 gold-equivalent ounces in 2025, growing to more than 180 000 gold-equivalent ounces in 2026.
All-in sustaining costs (AISC) are projected to fall from about A$2 750/oz in 2025 to A$2 160/oz in 2026, reflecting improved economies of scale.
Frazer Bourchier, president and CEO of Mandalay, called the merger “a compelling opportunity for Mandalay shareholders to accelerate value creation through increased capital markets scale, liquidity and a growing diversified asset base".
“We are excited to have found a like-minded partner committed to the same principles,” he said. “The transaction aligns with our vision to create a midtier gold and antimony producer with mines in premier operating jurisdictions.”
The combined company will be led by Alkane’s Nic Earner and be headquartered in Australia. Its board will comprise three directors nominated by Mandalay, including Brad Mills, Bourchier, and Dominic Duffy, as well as two by Alkane, including Ian Gandel and Earner, alongside newly appointed independent chairperson Andy Quinn.
The pro forma company will hold a strong balance sheet with a combined cash position of A$188-million (C$167-million) as of March 31, 2025, giving it flexibility to pursue organic and inorganic growth. This includes continued investment across its three operating assets and advancement of Alkane’s Boda-Kaiser copper/gold project in New South Wales.
The transaction, which has the support of major shareholders, is subject to court, regulatory, and shareholder approvals and is expected to close in the second half of 2025. 