Allied Gold announces termination of $5.5 billion takeover by Zijin
Allied Gold Corp. [AAUC-TSX, AAUC-OTCQX] said Wednesday a previously announced arrangement that would have seen the company being acquired by Hong Kong Stock Exchange-listed Zijin Gold International has been terminated. The deal, announced in January, 2026, was valued at $5.5 billion or $44 per share.
Both companies have concluded that there is no reasonable likelihood that conditions related to the completion of the transaction will be fulfilled by the outside date of July 29, 2026.
The company, however, has said Zijin Gold has agreed to make a strategic investment in Allied of approximately US$295 million (C$417 million).
Under the subscription agreement, Zijin Gold has pledged to subscribe, on a non-brokered private placement basis, for approximately 12.8 million common shares of Allied at a price of $32.55 per subscription share. Upon completion of the strategic investment, Zijin Gold will hold approximately 9.2% of the issued and outstanding shares of Allied Gold.
On Wednesday, Allied Gold shares were active on the news, falling 18.07% or $5.33 to $24.17. The shares previously traded in a 52-week range of $43.77 and $15.69.
Zijin Gold ranks among the world’s largest mining companies.
Allied is a Canadian gold producer, which released its preliminary second quarter 2026 operating results on Wednesday. It operates a portfolio of three producing assets and development projects located in Cote d’Ivoire, Mali and Ethiopia. Allied has said it aspires to become a mid-tier next-generation gold producer in Africa and ultimately, a leading senior global gold producer.
The net proceeds of the strategic investment by Zijin are expected to be used for continued advancement of Allied’s growth initiatives, including operational optimizations, the completion of the ramp-up of the Kurmuk mine in Ethiopia, the phased expansion of the Sadiola mine in Mali, production increases at the Cote d’Ivoire (CDI) Complex and exploration efforts across the company’s portfolio. The CDI Complex includes the Agbaou and Boniko mines.
Kurmuk is a transformational development mine located within the metal-rich Arabian Nubian Shield, approximately 500 kilometres from the capital, Addis Ababa. The start of operations at Kurmuk is expected in August, with the first gold pour following a few weeks later. Allied is targeting an annual production level of approximately 290,000 ounces of gold in the first five years and 240,000 ounces over a 10-year mine life. All-in sustaining costs are expected to be below US$950 per ounce.
Sadiola was expected to produce up to 205,000 ounces of gold in 2025 at an all-in-sustaining cost of US$1,735 an ounce.
Earlier this year, the company has also announced the start of ore processing at the Phase 1.0 expansion at the Sadiola mine in Mali where Allied is focusing on exploration and development of high-grade oxide deposits to maximize low-cost oxide feed and boost near term production and cash flows. Sadiola is expected to produce up to 205,000 ounces of gold this year at an all-in-sustaining cost of US$1,735 an ounce.