Mandalay Resources Corporation and Alkane Resources announce merger

Goodmans LLP is advising Mandalay Resources Corporation in connection with its agreement to combine in a merger of equals transaction with Alkane Resources Ltd., pursuant to which Alkane will acquire all the issued and outstanding common shares of Mandalay. 

The combined company’s implied market capitalization is estimated at A$1,013 / C$898 million and Mandalay shareholders will receive 7.875 Alkane ordinary shares for each Mandalay ordinary share following the transaction.

The merger will form a diversified producer of gold and antimony centered in Australia, supported by three active mining operations. Upon completion of the transaction, the combined company will operate as Alkane Resources and remain listed on the ASX with an expected dual listing on the TSX.

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). Alkane Resources is an Australian gold exploration and production company.