Zijin Mining (02899.HK)/Zijin Gold International (02259.HK): Terminates Allied Gold Takeover, Switches to CAD416.6 Million Subscription for 9.2% Sta
NewTimeSpace News: Zijin Mining Group Co., Ltd. (stock code: 2899) and Zijin Gold International Company Limited (stock code: 2259) issued a joint announcement regarding the termination of Zijin Gold International's proposed acquisition of Allied Gold Corporation (listed on TSX and NYSE under AAUC) and the proposed acquisition of a 9.2% equity interest via subscription of定向增发shares.
According to the announcement, on 26 January 2026, Zijin Gold International signed an Arrangement Agreement with Allied Gold to acquire all issued common shares at CAD 44 per share in cash, for a total consideration of approximately CAD 5.5 billion (approximately USD 4.0 billion). Following comprehensive assessment, both parties determined that the closing conditions could not be fully satisfied or waived before or within a reasonable period after the extended deadline of 29 July 2026. By mutual agreement, the parties signed a Termination Agreement on 29 July 2026, terminating the acquisition without either party paying termination fees or any other costs.
Concurrently, the parties signed a Share Subscription Agreement under which Zijin Gold International will subscribe for 12.8 million newly issued common shares of Allied Gold at CAD 32.55 per share (the 30-day volume-weighted average price on TSX prior to 27 July 2026), representing approximately 9.2% of Allied Gold's post-issuance total share capital, for a total subscription amount of CAD 416.6 million (approximately USD 295 million).
The announcement noted that Allied Gold's core assets include the producing Sadiola gold mine in Mali, the Côte d'Ivoire gold complex (Bonikro and Agbaou), and the Ethiopia Kurmuk gold mine scheduled for commissioning in August 2026. As of end-2025, Allied Gold held gold resources of approximately 541 tonnes at an average grade of approximately 1.38 g/t. Gold production was 10.7 tonnes, 11.1 tonnes, and 11.8 tonnes in 2023, 2024, and 2025 respectively, with projected production increasing to 25 tonnes by 2029.
As all applicable percentage ratios calculated under Listing Rule 14.07 do not exceed 5%, the subscription does not constitute a notifiable transaction or a connected transaction. The subscription remains subject to TSX and NYSE approvals and customary closing conditions.
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