en.Wedoany.com Reported - On March 12, Allied Gold announced that its shareholders have voted to approve the C$28 billion all-cash acquisition proposal by ZIJIN GOLD International, clearing the final hurdle for this cross-border transaction. This acquisition will further expand ZIJIN GOLD's gold resource footprint in Africa.
In January of this year, ZIJIN GOLD proposed to acquire Allied Gold at C$44 per share, representing a premium of approximately 23% over the 30-day volume-weighted average price prior to the announcement. Peter Marrone, CEO of Allied Gold, stated that this transaction stems from a strategic review initiated in 2024, aiming to maximize the value of its African assets through mergers or joint ventures.
Allied Gold operates three core assets in Africa: the Sadiola gold mine (80% ownership) in western Mali, the Agbaou-Bonikro mining complex in Côte d'Ivoire, and the Kurmuk project in Ethiopia, which is in the late-stage development phase. Among these, the Phase I expansion project at the Sadiola mine commenced in 2025. By constructing a new crushing circuit to process high-grade transition and oxide ores, it drove the mine's annual production to 193,900 ounces, accounting for 51% of Allied Gold's total output.
According to Allied Gold's 2025 performance report, its annual gold production reached 379,000 ounces, exceeding the guidance target of 375,000 ounces. Record quarterly production of 117,000 ounces was achieved in Q4, primarily due to increased ore grades and output across all mine sites. Besides Sadiola, the Bonikro mine delivered 100,700 ounces for the year, and the Agbaou mine contributed 84,500 ounces. The combination of production growth and rising gold prices nearly doubled Allied Gold's annual revenue, resulting in a turnaround to profitability.
According to the plan, Allied Gold is expected to produce between 385,000 and 425,000 ounces of gold in 2026. With the Kurmuk project's mid-term commissioning expected to contribute an additional 100,000 to 150,000 ounces, total production is anticipated to surpass 500,000 ounces. ZIJIN GOLD previously stated that upon completion of the acquisition, it will integrate the technical resources of both parties to accelerate the Phase II expansion of the Sadiola mine and the development of the Kurmuk project, further unlocking the potential of the African assets.
This acquisition marks the first independently-led cross-border M&A transaction by ZIJIN GOLD since its spin-off from Zijin Mining Group in 2024. Public information indicates that as a leading Chinese gold enterprise, ZIJIN GOLD International has, through global expansion in recent years, established multiple producing and developing mines in Africa, Central Asia, and other regions. This acquisition will increase its gold resource reserves by over 500 tonnes, solidifying its leading position in the global gold industry.
As of the market close on March 12, Allied Gold's stock price was C$43.05, with a market capitalization of approximately C$5.44 billion (around US$3.92 billion). Market analysis suggests that the capital injection and operational expertise from ZIJIN GOLD will help Allied Gold accelerate the development of its African projects, forming a virtuous cycle of "resources - production capacity - profit".
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