Alkane-Mandalay Merger Paves Way for New Aussie Gold and Antimony Producer

The Tomingley gold extension project is geared at extending the life of the Tomingley gold operations. The extension includes the San Antonio and Roswell resources, and shows the potential to produce 100,000 ounces of gold in 2025.

For its part, Mandalay’s Costerfield operation produced 54,805 gold equivalent ounces in 2024, or 43,346 ounces of gold and 1,282 tonnes of antimony. Antimony is a critical mineral used in key sectors like defence.

The companies project that the combined entity will produce about 160,000 gold equivalent ounces in 2025, with that amount rising to over 180,000 gold equivalent ounces the following year.

The transaction has been unanimously approved by both company boards and is expected to close in Q3. The all-share transaction is valued at AU$559.1 million, and the new entity’s implied market cap is AU$1.01 billion.

The combined company will keep the ASX as its primary listing and pursue a secondary listing on the TSX.

“We are excited to have found a like-minded partner committed to the same principles,” said Mandalay President and CEO Frazer Bourchier. “The transaction aligns with our vision to create a mid-tier gold and antimony producer with mines in premier operating jurisdictions and with our strategy for continued growth.”

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.