** Shares of Australian gold miner Alkane Resources ALK.AX rise 2% to A$0.765

** ALK says co will acquire Canada's Mandalay Resources MND.TO in an all-share deal valued at A$559.1 million ($357.26 million)

** Says merged entity will have an implied market capitalisation of A$1.01 billion

** Stock rose as much as 3.33% earlier in the day, on track for its second-straight day of gains

** Stock up 48% this year, including the day's move

($1 = 1.5649 Australian dollars)

(Reporting by Roushni Nair in Bengaluru)

((Roushni.nair@thomsonreuters.com;))