Two key regulatory approvals critical to Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) Ltd proposed merger with Mandalay Resources Corporation (TSX: MND, OTCQB: MNDJF) have been secured. The company has received clearance from the Foreign Investment Review Board (FIRB) and relief from the Australian Securities and Investments Commission (ASIC), satisfying two major conditions of the binding Arrangement Agreement announced in April 2025.
Alkane managing director and chief executive officer Nic Earner described the approvals as “important milestones and de-risking events for the progression of the merger,” and urged shareholders to vote in favour of the resolutions at the upcoming general meeting on July 28, 2025.
FIRB approval confirms no objections
On June 26, 2025, Alkane received written confirmation from the FIRB that the Australian Government has no objection to the acquisition under the Foreign Acquisitions and Takeovers Act 1975.
This satisfies one of the regulatory conditions required under the definitive Arrangement Agreement between Alkane and Mandalay. The agreement outlines Alkane’s plan to indirectly acquire all issued and outstanding common shares of Mandalay through a Canadian court-supervised process.
This clearance is a significant step in the transaction’s advancement and removes a potential barrier related to foreign ownership of Australian mining assets.
ASIC grants disclosure exemption
Alkane has also received relief from ASIC in relation to sections 707(3) and 707(4) of the Corporations Act 2001. Under normal circumstances, shares issued under the Transaction would be subject to a resale restriction for up to 12 months unless a disclosure document is lodged. With this relief, Mandalay shareholders will be able to freely trade their newly issued Alkane shares on the Australian Securities Exchange (ASX) without the need for such disclosures.
This exemption supports a smoother integration process and offers increased flexibility for Mandalay shareholders participating in the merger.
Earner reiterated the importance of shareholder engagement ahead of the July 28 vote.
“Detailed information on the merger transaction is now available, together with voting instructions for the Alkane and Mandalay shareholder meetings,” he said. “I encourage Alkane shareholders to carefully read the information made available by Alkane, and to vote in favour (whether by proxy or in person) of the Transaction resolutions.”
The merger has been unanimously endorsed by the boards of both companies, who are recommending that shareholders vote in support of the deal. If approved, the transaction will create a diversified, Australian-centric gold and antimony producer with three operating mines and a strengthened balance sheet.