Alkane Resources (ASX:ALK) has received approval from the Foreign Investment Review Board regarding the previously reported merger with Mandalay Resources Corporation (TSX:MND).
Under the transaction, Mandalay shareholders will receive 7.875 ordinary shares of Alkane for each share of Mandalay held immediately prior to the effective time of the transaction.
Upon completion, former Mandalay shareholders and existing Alkane shareholders will own 55% and 45%, respectively, of the outstanding shares of the combined company on a diluted basis.
Haywood Securities has been engaged as exclusive financial advisor for Mandalay, while Goodmans as Canadian legal advisor, Clayton Utz as Australian legal advisor, and Gencap Mining Advisory.
Bell Potter Securities and Euroz Hartleys have been engaged as joint financial advisors for Alkane, while HopgoodGanim as Australian legal advisor and Bennett Jones as Canadian advisor.
Alkane, which has a market capitalisation of $439 million, has also received relief from the Australian Securities and Investment Commission so that Mandalay shareholders who receive Alkane shares pursuant to the transaction may freely trade their Alkane shares within Australia, without the need to disclose.
CEO Nic Earner says voting for an upcoming shareholder meeting will take place on 28 July 2025.
“The recent satisfaction of the FIRB and other regulatory approvals represent further important milestones and de-risking events for the progression of the merger,” Earner says.
“The transaction has been unanimously approved by the board of directors of both Mandalay and Alkane.”
The pair say the merger, which will create a diversified gold and antimony producer, will have a robust balance sheet with a pro-forma cash balance of $188 million as at 31 March 2025.
Alkane Resources owns the Tomingley Gold and Northern Molong Porphyry projects, as well as other exploration prospects considered prospective for gold, copper, nickel, zinc and silver in New South Wales.
Mandalay Resources owns the Costerfield Gold-Antimony Mine in Australia, alongside the Björkdal Gold Mine in Sweden.
Write to Aaliyah Rogan at Mining.com.au
Images: Alkane Resources
