Zijin Gold Shelves $4 Billion Allied Gold Takeover

The original January agreement, valued at approximately 5.5 billion Canadian dollars, would have seen the Chinese mining giant acquire all outstanding shares of the Canadian producer at C$44 apiece. Regulatory hurdles proved insurmountable despite the deal receiving clearance in Canada and across Allied’s African operational hubs. Under the new arrangement, Zijin Gold will acquire 12.8 million shares at C$32.55 each, securing a 9.2% interest in the company.

Allied plans to funnel the $295 million proceeds into growth initiatives, specifically the Kurmuk gold project in Ethiopia and the expansion of the Sadiola mine in Mali. The investment remains subject to approvals from the Toronto and New York stock exchanges, with a target closing date of August 10. Following the announcement, Allied shares tumbled 17% in premarket trading, reflecting investor reaction to the significantly scaled-back partnership.