Allied Gold and Zijin Gold International have terminated their previously announced acquisition agreement after determining that the transaction’s closing conditions were unlikely to be satisfied by the July 29, 2026 deadline or within a reasonable period afterward.
The companies attributed the termination to broader external factors affecting cross-border transactions of this scale.
Rather than proceeding with the acquisition, Zijin Gold has agreed to make a strategic investment of approximately $295 million in Allied Gold.
Zijin will purchase approximately 12.8 million Allied Gold shares at C$32.55 per share through a non-brokered private placement.
The investment will generate approximately C$417 million in gross proceeds and give Zijin an ownership interest of approximately 9.2% in Allied Gold.
The subscription price equals Allied Gold’s 30-day volume-weighted average trading price as of July 27 and represents a premium to the company’s market price when the agreement was announced.
Completion is subject to approval from the Toronto Stock Exchange and New York Stock Exchange and is expected around August 10, 2026.
Zijin will receive participation and top-up rights allowing it to maintain its proportionate ownership interest through certain future share issuances. The shares will generally be subject to a four-month-and-one-day holding period under Canadian securities law.
Allied Gold plans to use the proceeds for operational improvements, completion and ramp-up of its Kurmuk mine, the phased expansion of Sadiola, production increases at its Côte d’Ivoire complex and exploration activity.
Kurmuk is expected to begin operating in August, with initial gold production anticipated several weeks later.
Support: Stifel Nicolaus Canada advised Allied Gold on the strategic investment.
