Alkane successfully consolidates with Mandalay Resources, initiates stock trading on TSX.
In early August 2025, Alkane Resources completed its merger with Mandalay Resources, creating a stronger, multi-mine gold producer with antimony exposure and improved growth prospects for 2025 and beyond.
The combined company, now operating three mines across multiple jurisdictions, is projected to produce approximately 160,000 gold equivalent ounces for the full financial year 2025. With guidance to increase to over 180,000 gold equivalent ounces in 2026.
The acquisition integrates Mandalay’s assets, including the Costerfield mine (gold-antimony) in Australia and the Björkdal gold mine in Sweden, with Alkane’s existing operations. The Costerfield mine, one of the world's richest gold and antimony mines, is central to the combined entity’s current focus.
The merger was structured with Mandalay shareholders receiving 7.875 fully paid Alkane shares per Mandalay share, effectively consolidating ownership and expanding Alkane’s resource base. Former Mandalay President and CEO Frazer Bourchier stated that the merged company is well positioned for a market re-rating, with a diversified production base, broader exploration pipeline, and enhanced trading liquidity.
Operational continuity is expected, as integration of management and boards is underway with minimal expected disruption to mine operations in the short term. The combined company has enhanced cash flow capacity and a solid balance sheet, supporting its internal growth opportunities in gold and antimony sectors.
Post-merger, Alkane Resources maintains listings on both the Australian Securities Exchange (ASX) and the Toronto Stock Exchange (TSX), increasing market visibility, liquidity, and access to capital markets particularly in North America. Mandalay shares officially delisted from the TSX on August 6, and Alkane began trading on the TSX under the symbol "ALK" on August 7.
Former Mandalay shareholders and existing Alkane shareholders respectively own approximately 55 percent and 45 percent of the new entity. The all-share transaction was valued at AU$559.1 million. The combined company will operate as Alkane and remain headquartered in Perth.
With the merger, Björkdal’s output is projected at 41,400 ounces of gold for 2025, while the Costerfield mine is projected to produce 49,400 gold equivalent ounces during the 2025 fiscal year. The Tomingley gold project in New South Wales, owned by Alkane, holds the potential to produce 70,100 ounces of gold this year.
In summary, the merger strategically enhances Alkane’s production footprint and production guidance for 2025 with stronger gold output and sustained antimony exposure, positioning the company for growth and resilience in precious and critical metals production going forward. Frazer Bourchier, now a non-executive director at Alkane, believes the merged company is well positioned for a market re-rating.
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