Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has secured a final order from the Supreme Court of British Columbia, approving the proposed plan of arrangement for Alkane to acquire Mandalay Resources Corporation.
This court decision follows shareholder approvals from both companies. Mandalay shareholders voted in favour of the transaction at a special meeting on July 28, 2025, while Alkane shareholders passed the relevant resolutions at its own General Meeting held on the same day.
With the final legal approval now in place, Alkane expects the acquisition to become effective on August 5, 2025, subject to the satisfaction or waiver of remaining customary closing conditions.
Undervalued relative to peers
Following completion of the transaction, the combined entity will hold more than A$140 million in net cash and is expected to produce between 160,000 and 200,000 gold-equivalent ounces annually.
Mandalay’s operations are reportedly tracking above the mid-point of its 2024 production guidance range of 85,000 to 95,000 ounces. As at June 30, the company held US$101 million in cash.
The merged group will maintain dual listings on the Australian Securities Exchange (ASX) and Toronto Stock Exchange (TSX).
Alkane anticipates robust free cash flow generation and considers the pro forma entity undervalued relative to peers with comparable production levels.