Zijin Gold International agreed on 26 January to acquire Toronto-based Allied Gold for C$44 per share in cash, valuing the miner's equity at about C$5.5bn ($4.0bn). The agreement was terminated on 29 July.
Why Zijin Gold International Company Limited is buying Allied Gold Corporation
Allied Gold's assets are in Africa: the Sadiola mine in Mali, the Côte d'Ivoire complex of Bonikro and Agbaou, and the Kurmuk project in Ethiopia. Zijin Gold chairman Hongfu Lin described Sadiola and Kurmuk as long-life assets expected to provide multi-decade production.
“Sadiola and Kurmuk are generational assets which we expect to provide multi-decade production.”
Deal terms and financing
The offer represented a premium of about 27% to Allied's 30-day volume-weighted average price on the TSX to 23 January and was funded from Zijin Gold's existing cash and liquidity, with no financing condition. Directors and officers holding about 15.4% of the shares signed voting support agreements, and Allied agreed to pay a C$220m termination fee in certain circumstances.
Regulatory approvals and timing
Allied shareholders approved the arrangement on 31 March 2026. Zijin received approval under the Investment Canada Act in May, along with ECOWAS and COMESA merger clearances, and the outside date was extended to 29 July. On that date the parties terminated the agreement, saying there was no reasonable likelihood the closing conditions would be met by the outside date or within a reasonable time, citing broader external factors affecting cross-border deals of this scale. Zijin agreed instead to subscribe for about 12.8 million new Allied shares at C$32.55 each, about C$417m, a placement Allied said had closed on 10 August, giving Zijin about 9.2%.
Market context
Allied Gold chairman and chief executive Peter Marrone said the offer price represented an all-time high for the company's share price. Allied, listed in Toronto and New York, has been developing the Kurmuk mine in Ethiopia and expanding Sadiola in phases.
