Zijin Mining Group (HKEx: 02899) and its subsidiary Zijin Gold International (HKEx: 02259) have issued a joint announcement regarding the termination of the proposed acquisition of Allied Gold Corporation (Allied Gold), which trades on both the Toronto Stock Exchange and the New York Stock Exchange under the ticker AAUC.
On January 26, 2026, Zijin Gold International, a controlled entity of Zijin Mining, entered into an arrangement agreement with Allied Gold. The agreement stipulated that Zijin Gold International would acquire all issued and outstanding common shares of Allied Gold at a cash price of C$44.00 per share, with a total consideration of approximately C$5.5 billion (or about US$4.0 billion).
Since the signing of the arrangement agreement, Zijin Gold International and Allied Gold have actively worked to advance the closing process. However, following a comprehensive evaluation, both parties concluded that the conditions precedent to the closing of the acquisition, which had been extended to July 29, 2026, would still be difficult to fully satisfy or obtain waivers for, both before that date and within a reasonable period thereafter.
Through amicable negotiations, the parties agreed not to extend the deadline for fulfilling the closing conditions further. On July 29, 2026, they signed a termination agreement, mutually agreeing to end the acquisition. Under this termination, neither party is required to pay any termination fee or other costs to the other.
Simultaneously, after full consultation, the parties have entered into a separate share subscription agreement. Under this new agreement, Zijin Gold International will subscribe for 12.8 million common shares of Allied Gold at a cash price of C$32.55 per share. This price represents the volume-weighted average trading price of Allied Gold's shares on the Toronto Stock Exchange over the 30 trading days prior to July 27, 2026. The total subscription amount is C$416.6 million (approximately US$295 million), and the shares will represent roughly 9.2% of Allied Gold's total outstanding shares after the issuance.
Allied Gold's core assets include the producing Sadiola Gold Mine in Mali, the Côte d'Ivoire Gold Complex (comprising the Bonikro and Agbaou gold mines), and the Kurmuk Gold Mine in Ethiopia, which is scheduled to commence production in August 2026. According to publicly disclosed information, as of the end of 2025, Allied Gold held gold resources of approximately 541 tonnes at an average grade of about 1.38 grams per tonne. The company produced 10.7 tonnes, 11.1 tonnes, and 11.8 tonnes of gold in 2023, 2024, and 2025, respectively. Driven by the expansion of the Sadiola project and the ramp-up of the Kurmuk project, Allied Gold expects its annual gold production to increase to 25 tonnes by 2029.
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