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Alkane to buy Mandalay in A$559.1 mln all-share deal

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Merged entity to produce 160,000 ounces in 2025

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Mandalay shareholders to own 55% of combined entity

(Adds share moves in paragraph 2, merger details in paragraph

4)

By Roushni Nair and Melanie Burton

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.

Shares in Alkane Resources ( ALKEF ) rose to 3.3% to A$0.76, as of

0108 GMT, outperforming an 0.1% fall in the broader mining

sub-index.

The merged entity will have an implied market capitalisation

of A$1.01 billion and expects to produce 160,000 gold-equivalent

ounces in 2025, rising to over 180,000 ounces in 2026 from three

established mines - Alkane's Tomingley, Mandalay's Costerfield

mine in Australia and Björkdal mine in Sweden.

The deal includes Mandalay's Costerfield mine, which

produces about 2,800 metric tons of antimony annually - a

critical mineral used in semiconductors and military

applications that has seen prices surge 250% in 2024 following

China's ban amid an ongoing global supply shortage.

Under the transaction, Mandalay shareholders will receive

7.875 Alkane shares for each Mandalay share, giving them 55%

ownership of the combined entity.

The tie-up joins a wave of consolidation in the global gold

sector, with miners capitalising on soaring bullion prices. Gold

scaled a record $3,500.05 per ounce last week, up more than 25%

on geopolitical tensions and strong central bank demand.

The Alkane-Mandalay transaction, unanimously approved by

both boards, is expected to close in the third quarter of 2025.

While maintaining its primary listing on the Australian

Securities Exchange, the combined firm will seek a secondary

listing on the Toronto Stock Exchange.

Current Alkane Managing Director Nic Earner will lead the

Australian-headquartered merged entity.

($1 = 1.5623 Australian dollars)