Gold M&A Kicks off for 2026
C$5.5B deal also marks the first for Zijin’s gold spin-off
Allied Gold Corporation (TSX/NYSE: AAUC) has agreed to a C$5.5 billion cash takeover offer from Zijin Gold International Company (HK: 2259).
Zijin has offered C$44 per share, representing a premium of roughly 27% to Allied’s 30-day volume-weighted average price on the TSX.
Allied shares are up by more than 250% over the past 12 months, closing at a record high of C$41.75 on Friday.
“The announced transaction provides a highly attractive all-cash offer for Allied Gold at what represents an all-time high for the company’s share price, crystallising significant and certain value for its shareholders,” Allied chairman and CEO Peter Marrone said.
The deal follows the launch of a strategic process by Allied in 2024 to examine operational and geopolitical risks mitigation and potential joint ventures, asset acquisitions and increased size and scale to maximise shareholder value.
Allied said it had engaged with companies regarding business combinations and company and asset-level investments and launched a competitive process in mid-2025 after receiving strong interest.
“In light of the significant and immediate value being provided to our shareholders, along with the compelling track record of Zijin Gold, Allied Gold’s board of directors recommends that shareholders vote in favour of the transaction at the special meeting of the shareholders to be called to approve the transaction,” Marrone said.
The transaction, which is expected to close in April, needs the approval of two-thirds of Allied shareholders.
Allied will have to pay Zijin Gold a break fee of C$220 million in certain circumstances if the deal doesn’t go ahead.
First deal for Zijin Gold
The transaction marks the first major acquisition for Zijin Gold since it was spun out of its parent company Zijin Mining Group Co (SH: 601899) in September 2025.
Zijin Gold will fund the acquisition from existing cash and liquidity.
The deal will give Zijin ownership of the Sadiola mine in Mali, the CDI Complex in Côte d’Ivoire and the advanced Kurmuk development project in Ethiopia.
Allied’s 2025 guidance was 375,000-400,000 ounces of gold, increasing to 600,000oz this year.
“Allied Gold has successfully assembled and advanced a portfolio of large-scale, long-life gold assets with compelling expansion potential,” Zijin Gold chairman Hongfu Lin said.
“Sadiola and Kurmuk are generational assets which we expect to provide multi-decade production, complemented by the meaningful production from the CDI Complex.
“The acquisition is consistent with our strategy of acquiring high-quality gold assets and expands our presence in Africa.”
Zijin is already active in Africa, owning the Aurora gold mine in Guyana and the Akyem gold mine in Ghana, as well as a majority stake in the Rosebel mine in Suriname.
It also holds a 3.5% stake in Guinean developer Predictive Discovery (ASX: PDI), which recently agreed to a merger with Robex Resources (TSXV: RBX).
Deals flow in West Africa
The merger between Predictive Discovery and Robex is due to close in the current quarter following Robex shareholder approval on December 30 and Quebec court approval earlier this month.
Robex had to fight off a rival offer from Perseus Mining (ASX/TSX: PRU), which held a major stake in Predictive Discovery.
The merger agreement was amended and Perseus walked away, but the multi-mine producer has since upsized its existing debt facility with a syndicate of banks by US$100 million to US$400 million, increasing liquidity to more than US$1.2 billion to allow it to pursue growth.
Montage Gold Corp (TSX: MAU), which recently announced the US$170 million scrip acquisition of African Gold (ASX: A1G), this month had brought forward the first gold pour at its 300,000oz per year Koné project in Côte d’Ivoire by six months to Q4 2026.
Montage also holds substantial stakes in Côte d’Ivoire-focused Aurum Resources (ASX: AUE) and Guinea-focused Sanu Gold Corporation (CSE: SANU).