AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
Following Northern Star Resources’ (ASX: NST) announcement last week that it had completed a deal to acquire De Grey Mining for A$5 billion. Australia’s Alkane Resources (ASX: ALK) will acquire Canada’s Mandalay Resources (TSX: MND) in an all-share deal, according to Mining.COM.
The deal is valued at nearly A$560 million (C$358 million), combining a diversified integrated producer of gold and antimony.
Alkane will acquire all issued and outstanding common shares of Mandalay. Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share held. Post-transaction, former Mandalay shareholders will own 55% of the combined entity, with existing Alkane shareholders retaining 45%.
The merged company will operate under the Alkane Resources name, maintain its Australian Securities Exchange (ASX) listing, and pursue a secondary listing on the Toronto Stock Exchange (TSX).
With an implied market capitalization of A$1.01billion(US$896.5 million), the entity is projected to produce 160,000 gold-equivalent ounces (oz) in 2025, rising to over 180,000 oz in 2026 through its key assets: Alkane’s Tomingley project and Mandalay’s Costerfield mine in Australia, as well as the Björkdal mine in Sweden.
BMO Capital Markets analyst Brian Quast described the transaction as a “merger of equals” in a Monday research note. The total consideration of C$5.28 per Mandalay common share represents a 2% premium to the stock’s latest closing price but a 6% discount to its 20-day volume-weighted average price.
Gold miners’ recent transactions include: Equinox Gold’s (TSX, NYSE-A: EQX) C$2.6 billion acquisition of Calibre Mining (TSX: CXB) in February; Spartan Delta (TSX: SDE) agreed to a A$2.4 billion takeover by Australia’s Ramelius Resources (ASX: RMS); South Africa’s Gold Fields’ (JSE, NYSE: GFI) A$3.3 billion bid for Gold Road Resources (ASX: GOR), though rejected.
