Alkane Resources (ASX:ALK,OTC Pink:ALKEF) and Mandalay Resources (TSX:MND,OTCQB:MNDJF) have announced a merger of equals to form a new gold and antimony producer.
In a joint release on Monday (April 28), the companies said former Mandalay shareholders and existing Alkane shareholders will respectively own approximately 55 percent and 45 percent of the combined entity.
The new company will focus on Australia-based assets, such as Alkane’s Tomingley gold project in New South Wales and Mandalay’s Costerfield gold-antimony mine, which is located in Victoria.
Also included in Mandalay’s portfolio is the Björkdal underground gold mine in Sweden.
“Mandalay’s two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside,” said Alkane Managing Director Nic Earner.
“The combination of assets, leadership, and supportive long-term shareholders enhances our scale and financial strength, and positions us well to continue to pursue additional growth opportunities.’
Tomingley is Alkane’s flagship asset, and consists of the Tomingley gold operations, the Tomingley gold extension project, the Peak Hill gold mine and other exploration licences.
