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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.