By Adriano Marchese
Shares of Mandalay Resources rose after the company said over the weekend that it would merge with Australia's Alkane Resources.
The stock rose 5.5% to 5.41 Canadian dollars ($3.90) in late morning trading on Monday.
The companies said Sunday they had agreed to combine in a merger of equals transaction. Alkane will acquire all the shares of Mandalay at a ratio of 7.875 shares per Alkane share.
Once the transaction is finalized, Mandalay shareholders and existing Alkane shareholders will own about 55% and 45%, respectively. The newly combined company has an implied market cap of C$898 million, the two companies said.
The merger will create a diversified Australian-focused gold and antimony producer with a portfolio of three operating mines and a strong balance sheet, they said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
April 28, 2025 11:07 ET (15:07 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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