April 28 (Reuters) - Australia's Alkane Resources ( ALKEF )

will acquire Canada's Mandalay Resources ( MNDJF ) in an

all-share deal valued at A$559.1 million ($357.8 million), the

companies said on Monday, creating a combined diversified gold

and antimony producer.

The merged entity will have an implied market capitalization

of A$1.01 billion.

The tie-up joins a wave of consolidation sweeping the global

gold sector as miners capitalize on bullion prices hovering near

record highs to strengthen their portfolios and operational

footprints.

Under the transaction, described as a "merger of equals,"

Mandalay shareholders will receive 7.875 Alkane shares for each

Mandalay share, giving them about 55% ownership of the combined

entity.

The merged company expects to produce 160,000

gold-equivalent ounces in 2025, rising to over 180,000 ounces in

2026, operating three established mines - two in Australia and

one in Sweden.

Current Alkane Managing Director Nic Earner will lead the

Australian-headquartered company, which will combine Alkane's

recently expanded Tomingley gold operation with Mandalay's

Costerfield gold-antimony mine in Australia and Björkdal gold

mine in Sweden.

($1 = 1.5623 Australian dollars)