Allied Gold's $4 billion sale to China's Zijin collapses, lands $295 million investment (updated)

Allied Gold

29/07/2026 12:51

Adds details on the deal throughout and updates shares
July 29 (Reuters) - Zijin Gold 2259.HK and Allied Gold AAUC.TO scrapped a planned C$5.5 billion ($3.90 billion) buyout of the Canadian miner, with the Chinese company instead taking a 9.2% stake for about $295 million.
U.S.-listed shares of Allied Gold were down nearly 15% in premarket trading.
The companies said on Wednesday they mutually agreed to let the July 29 deadline expire, as there was "no reasonable likelihood" the remaining conditions would be met within a reasonable period.
Allied also cited broader external factors affecting cross-border transactions of this scale, but did not provide further details.
The Canadian firm operates gold mines and development projects in Ivory Coast, Mali and Ethiopia, while Zijin Gold has mining operations across Asia, Africa, Australia and South America.
The companies announced the deal in January, when Zijin agreed to acquire Allied for C$44 per share. 

ZIJIN REMAINS INVESTOR
Zijin agreed to subscribe for about 12.8 million newly issued Allied shares at C$32.55 per share in a private placement for the 9.2% stake, with the transaction expected to close on or about August 10.
Allied said it expects to use the proceeds to advance growth initiatives, including completing and ramping up the Kurmuk mine in Ethiopia, expanding the Sadiola mine in Mali, increasing production at its Ivory Coast operations and funding exploration across its business.
   

($1 = 1.4098 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru; Editing by Vijay Kishore)
 ((Arunima.Kumar@thomsonreuters.com;))