The Supreme Court of British Columbia has approved Alkane Resources’ (ASX:ALK) plan of arrangement to acquire Mandalay Resources Corporation (TSX:MND).
Subject to satisfying or waiving the remaining conditions, Alkane expects the arrangement to become effective on 5 August 2025.
CEO Nic Earner says the work on integrating both companies is currently underway, with the integration of the board and management teams the company expects minimal impact on the operations in the coming months.
“Alkane is set to become a three mine, multi-jurisdictional gold miner with antimony exposure, strong cashflow generation, a very solid balance sheet and great internal growth opportunities,” Earner says.
In April 2025, both companies agreed to combine via a merger, creating a diversified gold and antimony producer. The merged company will have a combined robust balance sheet with a pro-forma cash balance of $188 million as at 31 March 2025, to pursue organic and inorganic growth.
As Mining.com.au reported, 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.
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.
Write to Aaliyah Rogan at Mining.com.au
Images: Alkane Resources
