Alkane Resources (ASX:ALK) has received approval from the Foreign Investment Review Board (FIRB) regarding its previously announced merger with Mandalay Resources Corporation (TSX:MND). Alkane is an Australian exploration and development company focused on gold and copper. It owns the Tomingley Gold and Northern Molong Porphyry projects, as well as other exploration prospects in New South Wales.
Under the terms of the transaction, Mandalay shareholders will receive 7.875 ordinary shares of Alkane for each Mandalay share held prior to the merger’s effective time. Upon completion, former Mandalay shareholders will own 55% of the combined company, while existing Alkane shareholders will hold 45% on a diluted basis. Mandalay Resources owns the Costerfield Gold-Antimony Mine in Australia and the Björkdal Gold Mine in Sweden.
Alkane CEO Nic Earner stated that the FIRB approval represents a significant milestone and de-risking event for the progression of the merger. He also noted that the transaction has been unanimously approved by the boards of directors of both Mandalay and Alkane. The merger aims to create a diversified gold and antimony producer with a robust balance sheet, including a pro-forma cash balance of $188 million as of 31 March 2025.
Shareholders are scheduled to vote on the merger at an upcoming meeting on 28 July 2025. Alkane has also received relief from the Australian Securities and Investment Commission, allowing Mandalay shareholders who receive Alkane shares to freely trade them within Australia without disclosure requirements. Haywood Securities, Bell Potter Securities, and Euroz Hartleys are acting as financial advisors, with various firms providing legal counsel.
