AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Swedish authorities approve Alkane–Mandalay merger.
- Combined firm to control three producing gold assets.
- Estimated production of 180,000 oz gold equivalent in 2026.
The proposed merger between Alkane Resources Ltd (ASX:ALK) and Mandalay Resources Corp. (TSX:MND) has taken a significant step forward, with approval granted by the Swedish Inspectorate of Strategic Products. The decision confirms that no further review is required under Sweden’s Foreign Direct Investment Act, removing a major regulatory barrier for the transaction.
This strategic merger, labelled a “merger of equals,” remains subject to several additional approvals, including those from the Supreme Court of British Columbia, the Australian Foreign Investment Review Board (FIRB), and the shareholders of both companies. These shareholder votes are expected to occur in late July 2025.
If approved, Mandalay shareholders will receive 7.875 Alkane shares per Mandalay share, resulting in a 55% stake in the merged entity for Mandalay investors. Alkane shareholders would own the remaining 45%.
The combined company, estimated to be valued at approximately A$1 billion, will manage three producing gold mines — Tomingley and Costerfield in Australia, and Björkdal in Sweden. Production is projected to hit around 180,000 ounces of gold equivalent by 2026. Operational efficiency remains a focus, with the group’s all-in sustaining cost (AISC) forecasted to average A$2,160 per ounce, reinforcing the merger's accretive outlook.
Alkane’s managing director, Nic Earner, will lead the new entity. The board will consist of members from both companies and will be chaired by experienced mining executive Andy Quinn. According to Earner, this merger enhances operational scale, financial strength, and positions the company well for future growth.
The merger also supports Alkane’s ambition to evolve into a diversified, Australia-centric gold and antimony producer. With Tomingley as its flagship asset, Alkane (ASX:ALK) has already shown long-term production potential and a consistent exploration track record, particularly in the corridor between Tomingley and Peak Hill.
One of the company’s most notable exploration milestones was the 2019 discovery of porphyry-style gold-copper mineralisation at Boda. With ongoing drilling and development, Boda is expected to reinforce Central West New South Wales as a key region for gold and copper.
In line with its expansion plans, Alkane maintains strategic investments in several Australian gold-focused exploration and development firms. These moves reflect a clear strategy to strengthen its multi-asset portfolio.
Given Alkane’s standing among notable ASX200 stocks, the merger marks a pivotal moment, potentially reshaping the gold mining landscape across Australia and Sweden.
