07:15 PM EDT, 04/27/2025 (MT Newswires) -- Alkane Resources Limited and Mandalay Resources Corporation ( MNDJF ) overnight Sunday executed a definitive arrangement agreement whereby Alkane will acquire all the issued and outstanding common shares of Mandalay pursuant to a court-approved plan of arrangement. Following completion of the transaction, the combined company will continue operating as 'Alkane Resources', remain listed on the ASX and is seeking a listing on the TSX exchange.

Under terms of the arrangement, Mandalay shareholders will receive 7.875 ordinary shares of Alkane for each ordinary share of Mandalay held immediately prior to the effective time of the transaction. Upon completion of the transaction, former Mandalay shareholders and existing Alkane shareholders will own approximately 55% and 45%, respectively, of the outstanding ordinary shares of the combined company, on an undiluted basis. The implied market capitalization of the combined company is estimated at A$1,013 or C$898 million. The executive team of the combined company will be Australian-based and led by Alkane Managing Director Nic Earner.

Among highlights, the companies said the deal involves: three cash generating mines in "premier mining jurisdictions with strong organic growth"; with projected gold equivalent production of about 160,0001 ounces in 2025, increasing to over 180,000 ounces in 2026; and with a "robust: proforma balance sheet of A$188 or C$167 million cash to fuel growth as at March 31, 2025.

Increased scale and trading liquidity is "anticipated to drive valuation re-rate" the companies added.

Meanwhile, and staying with a Canada-Australia related story, Perseus Mining Limited ( PMNXF ) announced that a Final Investment Decision (FID) has been taken to develop the Nyanzaga Gold Project (NGP) in Tanzania, following an update of the NGP Feasibility Study (FS).

Perseus in a statement said it has committed to invest approximately US$523 million (including contingency) to develop and prepare for the operation of the mine that is expected to produce first gold in Q1 2027. The NGP development will be solely financed via interest free, intercompany loans provided by Perseus from its existing cash and bullion balance of US$801 million as of 31 March 2025, it added.

In anticipation of an affirmative FID, Perseus said it has spent approximately US$27.5 million to date to build project team capacity and commence early works that include site establishment, installation of temporary construction accommodation, and bulk earthworks as well as implementing the Relocation Action Plan (RAP) to construct new dwellings for people impacted by future construction and operating activities.

It added: "The updated FS incorporates findings and recommendations from a range of comprehensive technical assessments made by Perseus's technical team. Notably, Perseus has opted for a large scale, wholly open-pit mining operation, for the first phase of development, in preference to a smaller scale, combined open pit - underground option contemplated by the previous owners."

Key metrics associated with the NGP include the following: total gold production over an 11-year, Phase 1 mine life is currently estimated to be 2.01 Moz based on a JORC 2012 Probable Ore Reserve of 52.0 Mt at 1.40 g/t gold for 2.3 Moz; gold production averages over 200,000 ounces of gold per annum from FY28 to FY35, with peak production of 246,000 ounces in FY28; and over the life of the mine, the estimated average All-In Site Cost (AISC) is US$1,211/oz. Also, capital cost for the plant and site infrastructure is estimated at US$472 million inclusive of US$49 million of contingency, and pre-production capital of US$51 million, giving a total capital cost to first gold pour of US$523 million.