These two gold miners are joining forces to become Australia’s next mid-tier producer.
Alkane Resources and Mandalay Resources have announced a ‘merger of equals’ transaction that will see Alkane acquire all Mandalay shares.
When the dust settles, former Mandalay shareholders and existing Alkane shareholders will own 55 and 45 per cent respectively.
Alkane’s established Tomingley gold in New South Wales, currently ramping up after a major capital expansion, will complement the well-established and stable production from Mandalay’s Costerfield underground gold/antimony mine in Victoria and the Björkdal underground gold mine in Sweden.
Alkane managing director Nic Earner will lead the new company, which he said will be a diversified Australian-centric gold and antimony producer with a portfolio of three operating mines and a strong balance sheet.
“The transaction will take Alkane to a new level, bringing together two companies with complementary assets and a shared vision for growth,” Earner said.
“Mandalay’s two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside.
“The combination of assets, leadership, and supportive long-term shareholders enhances our scale and financial strength, and positions us well to continue to pursue additional growth opportunities.”
The new company will have a combined forecast production of 160,000 gold-equivalent ounces in 2025, growing to over 180,000 gold-equivalent ounces in 2026.
Mandalay president and chief executive officer Frazer Bourchier said the merger will position the new entity for a valuation re-rate in line with its ASX-listed peers.
“The transaction presents a compelling opportunity for Mandalay shareholders to accelerate value creation through increased capital markets scale, liquidity and a growing diversified asset base,” Bourchier said.
“We are excited to have found a like-minded partner committed to the same principles.
The transaction aligns with our vision to create a mid-tier gold and antimony producer with mines in premier operating jurisdictions and with our strategy for continued growth.”
