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Highlights
- FIRB approval advances Alkane–Mandalay merger
- Post-merger entity to have $188M pro-forma cash
- Shareholder meeting scheduled for July 28, 2025
Alkane Resources (ASX:ALK) has cleared a key regulatory hurdle in its merger with Mandalay Resources Corporation (TSX:MND), receiving the green light from the Foreign Investment Review Board (FIRB). This marks a pivotal milestone in the creation of a global-scale, diversified gold and antimony producer.
Under the terms of the proposed merger, Mandalay shareholders will receive 7.875 ordinary shares of Alkane for each Mandalay share held before the transaction becomes effective. Once finalized, former Mandalay shareholders will hold approximately 55% of the combined company on a diluted basis, with Alkane shareholders retaining the remaining 45%.
The merger aligns with Alkane’s strategic focus on becoming a leading mid-tier gold and critical minerals producer. The integration will bring together Alkane’s assets, including the Tomingley Gold Operations and Northern Molong Porphyry Project in New South Wales, with Mandalay’s globally diversified portfolio, comprising the Costerfield Gold-Antimony Mine in Australia and the Björkdal Gold Mine in Sweden.
With a market capitalization of $439 million, Alkane has also secured relief from the Australian Securities and Investments Commission (ASIC). This allows Mandalay shareholders receiving Alkane shares to trade them freely in Australia without the need for further disclosure—another step simplifying the post-merger integration process.
The combined entity is expected to benefit from an improved balance sheet, highlighted by a pro-forma cash balance of $188 million as of 31 March 2025. This solid financial footing positions the new company for further development across its gold and antimony assets and exploration activities targeting copper, nickel, silver, and zinc.
A shareholder meeting is scheduled for 28 July 2025, at which stakeholders will vote on the final terms of the transaction. The merger has already received unanimous approval from the boards of both companies, signalling a strong commitment to the consolidation.
Once completed, the merger will establish a well-capitalized, diversified miner poised to contribute meaningfully to Australia's resource sector and beyond.
