finsmart-news_admin 
First announced in April, the deal creates a combined company that is projected to produce about 160,000 gold equivalent ounces in the 2025 fiscal year, with the potential to rise to 180,000 ounces the following year.
Alkane has acquired all of Mandalay's issued and outstanding common shares, with former Mandalay shareholders and existing Alkane shareholders respectively owning approximately 55 percent and 45 percent of the new entity.
“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,” said Alkane Managing Director and CEO Nic Earner in a press release.
Alkane began pursuing a TSX listing following the merger announcement. The company began trading on the TSX under the symbol "ALK" on August 7, with the ASX remaining as its primary listing.
Mandalay shares officially delisted from the TSX on August 6, the day after the merger closed.
Australia remains Alkane’s focus, with its Tomingley gold project in New South Wales holding the potential to produce 70,100 ounces of gold this year, forming a substantial part of the company’s projected output.
According to Alkane’s recent Diggers & Dealers presentation, Mandalay’s Costerfield gold-antimony mine, located in Victoria, Australia, is also central to the combined entity’s current focus.
The company said Costerfield is one of the world’s richest gold and antimony mines. It is expected to produce 49,400 gold equivalent ounces during the 2025 fiscal year. Björkal, an open-cut gold mine in Sweden owned by Mandalay, also forms part of the transaction. Its output is projected at 41,400 ounces of gold for 2025.
“With a diversified production base, broader exploration pipeline and enhanced trading liquidity, (we are) well positioned for a market re-rating,” added former Mandalay President and CEO and Frazer Bourchier.
Bourchier is now a non-executive director at Alkane.
The combined company will operate as Alkane and remain headquartered in Perth.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
