April 28 (Reuters) - Alkane Resources ( ALKEF ):

* ALKANE & MANDALAY MERGE TO CREATE GOLD & ANTIMONY PRODUCER

* IMPLIED MARKET CAPITALIZATION OF COMBINED COMPANY IS

ESTIMATED

AT A$1,013 MILLION

* ALKANE WILL ACQUIRE ALL ISSUED AND OUTSTANDING COMMON

SHARES OF

MANDALAY IN PLAN OF ARRANGEMENT

* MANDALAY SHAREHOLDERS WILL RECEIVE 7.875 ORDINARY SHARES

OF

ALKANE FOR EACH ORDINARY SHARE OF MANDALAY

* FORMER MANDALAY SHAREHOLDERS TO OWN 55% OF COMBINED

COMPANY

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