Zijin Gold acquisition of Allied Gold nearing completion following shareholder approval
Shareholders voted to approve the merger on 1 April, clearing the path for Zijin Gold to utilise existing cash reserves for the C$5.5 billion transaction.
Shareholders of Allied Gold Corporation approved a proposed acquisition by Zijin Gold on 1 April, marking a significant milestone for the Toronto-headquartered international gold mining company. The deal, which has no financing conditions attached, is expected to close by the end of May.
The transaction is structured as an all-cash deal that values Allied Gold at C$44 per share, resulting in a total equity value of C$5.5 billion. Zijin Gold, a Hong Kong-listed company, intends to fund the acquisition using cash on hand. This proposed share price represents an all-time high for Allied Gold's stock.
The acquisition aligns with key operational milestones for the miner. Allied Gold's core assets, including the Sadiola mine in Mali, the Côte d'Ivoire complex, and the Kurmuk project in Ethiopia, are poised to begin production this year. Currently, the company produces approximately 375,000 ounces of gold annually.
Once the new assets become operational, Allied Gold aims to increase its annual output to between 700,000 and 800,000 ounces. The company operates these high-quality mines using both open-pit and underground techniques across its portfolio in Mali, Côte d'Ivoire, and Ethiopia.
While the deal is expected to finalise by the end of May, standard regulatory approvals or unforeseen conditions could potentially delay the process. The transaction represents a major shift for the sector, bringing a significant African gold producer under the ownership of one of the world's largest gold miners.
