Alkane and Mandalay Merge to Create a New Force in Gold and Antimony Production

April 28, 2025 10:41 AM AEST | By Team Kalkine Media

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Alkane and Mandalay Merge to Create a New Force in Gold and Antimony Production — Image source: shutterstock

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Highlights

Alkane and Mandalay to merge, forming a diversified producer.

New entity targets over 180,000 gold-equivalent ounces production by 2026.

Strong cash position to drive future organic and inorganic growth.

Alkane Resources Ltd (ASX:ALK) and Mandalay Resources Corporation (TSX:MND, OTCQB:MNDJF) have announced a strategic merger, joining forces to build a stronger, diversified gold and antimony producer operating across leading mining regions.

The combined company will continue under the Alkane Resources name and maintain its ASX listing while pursuing an additional listing on the Toronto Stock Exchange (TSX). Leadership for the new entity will be spearheaded by Alkane’s Managing Director, Nic Earner, supported by a refreshed board with representatives from both companies and chaired by industry veteran Andy Quinn.

This merger of equals unites complementary assets, with Mandalay’s two high-quality mines aligning with Alkane’s Tomingley gold operation. Together, they bring a consistent history of production, cash flow, and significant exploration upside. The agreement outlines that Mandalay shareholders will receive 7.875 Alkane shares for every Mandalay share, resulting in a combined ownership structure where Mandalay shareholders hold approximately 55% and Alkane shareholders 45%.

The newly formed platform is expected to deliver around 160,000 gold-equivalent ounces in 2025, with projections climbing beyond 180,000 ounces in 2026. Anchoring these operations are three key producing mines: Tomingley in New South Wales (Australia), Costerfield in Victoria (Australia), and Björkdal in Sweden.

A strong financial foundation supports the merger, with a combined cash position of A$188 million (C$167 million) as of March 31, 2025. This robust balance sheet is set to propel both organic growth initiatives and strategic expansion opportunities.

Beyond strengthening production capabilities, the merger is designed to improve trading liquidity, attract greater institutional investment, and enhance valuation potential. Growth will be fueled by ramping up operations at Tomingley and advancing projects like the Boda-Kaiser copper-gold prospect.

The transaction has received unanimous backing from the boards of both Alkane and Mandalay. Completion of the merger is anticipated in the third quarter of 2025, pending regulatory, shareholder, and court approvals.

Mandalay’s President and CEO, Frazer Bourchier, emphasized that the merger offers a pathway to accelerated value creation, expanded market presence, and a resilient growth trajectory across top-tier mining jurisdictions.

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