The merger between Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) and Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) has been completed, creating a dual-listed gold and antimony producer with a diversified asset base in Australia and Sweden.
The newly combined entity, operating as Alkane Resources Limited, holds three cash-generating assets — Costerfield (Victoria), Tomingley (New South Wales) and Björkdal (Sweden) — with a projected gold-equivalent output of 160,000 ounces in FY2025, rising to over 180,000 ounces in 2026.
The company is supported by a robust pro forma cash position of A$218 million and is well-placed for sustainable growth and valuation re-rating.
The Toronto Stock Exchange (TSX) has conditionally approved listing of Alkane shares under the ticker “ALK”, with trading expected to commence on or about August 8, 2025.
“This merger represents a significant step forward for both companies. By combining our complementary portfolios, we have created a stronger, more resilient platform with the scale and financial flexibility to pursue long-term growth. I am pleased to welcome our new shareholders and the Mandalay team as we move forward together, focused on delivering sustainable production and long-term value,” Alkane CEO and MD Nic Earner said.
Merger structure and terms
The transaction was completed under a statutory plan of arrangement governed by the Business Corporations Act (British Columbia), through which Alkane acquired all issued and outstanding Mandalay shares. Shareholders of Mandalay are entitled to receive 7.875 fully paid ordinary Alkane shares for each Mandalay share held.
Mandalay shares are expected to be delisted from the TSX on or about August 6, 2025, with an application lodged to cease Mandalay’s reporting issuer status in Canada.
Shareholders are urged to complete the letter of transmittal via Computershare or contact their broker to receive the agreed consideration.
Strategic rationale and leadership
Frazer Bourchier, former Mandalay CEO and now Alkane non-executive director, highlighted the combined company’s diversified production base, exploration pipeline and enhanced market positioning.
“We are proud to have successfully completed this transaction. With a diversified production base, broader exploration pipeline, and enhanced trading liquidity, the combined company is well positioned for a market re-rating. I sincerely thank our shareholders and the entire Mandalay team for their continued support, and I look forward to continuing to deliver shareholder value as a director of Alkane,” Frazer Bourchier, former president and CEO of Mandalay and new non-executive director of Alkane said.
The new board comprises Alkane’s Nic Earner and Ian Gandel, former Mandalay directors Brad Mills, Frazer Bourchier and Dominic Duffy, and independent chair Andy Quinn. The management team is led by Earner and CFO James Carter, with former Mandalay executives retained in key operational roles to ensure continuity.