Key Takeaways:
Allied Gold Corp. cleared a key regulatory hurdle for its C$44-a-share sale to Zijin Gold International after receiving Investment Canada Act approval, completing the Canadian approval process for the transaction.
"The receipt of ICA approval removes a significant condition to closing the transaction, which was approved by more than 99% of Allied Gold shareholders on March 31," the company said in a statement Thursday.
The deal also received merger clearance from the Regional Competition Authority of the Economic Community of West African States and the Competition and Consumer Commission of the Common Market for Eastern and Southern Africa. Certain African host-country regulatory approvals have been obtained or are in advanced stages, Allied Gold said. The parties agreed to amend the credit facility to facilitate completion, with implementation in progress.
The extension of the outside date to July 29 from May 29 gives the parties additional time to satisfy remaining conditions. Allied Gold shares traded at $27.07 on Thursday, a 15.9% discount to the C$44 offer price, reflecting residual uncertainty about the timeline and outstanding approvals. Any further extension beyond July would require mutual agreement.
The C$44-per-share all-cash offer represents a 27% premium to Allied Gold's undisturbed price. The stock has traded below the offer price since the deal was announced in March, with the gap narrowing as regulatory milestones are achieved. Trading volume on Thursday was 175,968 shares, well below the 20-day average of 822,657, suggesting limited conviction on either side ahead of the extended deadline.
Allied Gold operates three producing mines in Cote d'Ivoire, Mali and Ethiopia, plus the Kurmuk development project in Ethiopia. The company reported record fourth-quarter production in 2025 and has been advancing its growth strategy alongside the transaction process.
Zijin Gold, a unit of China's Zijin Mining Group Co., is one of the world's largest gold producers by output. The acquisition would give Zijin control of Allied Gold's African asset portfolio, adding to existing operations on the continent. The deal has drawn attention from gold sector investors, with peers such as Seabridge Gold, Centerra Gold and DRDGold all posting gains of 2% to 5% on Thursday, while Allied Gold shares were flat.
Completion of the transaction remains subject to receipt of outstanding regulatory approvals and the satisfaction or waiver of remaining conditions under the arrangement agreement. The parties said they continue to advance the transaction toward completion in a timely manner.
This article is for informational purposes only and does not constitute investment advice.
