Zijin Gold Abandons 5.5 Billion Acquisition of Allied Gold

Allied Gold Corporation and Zijin Gold International Company Ltd. terminated a $5.5-billion arrangement agreement for the acquisition of the Canadian miner on July 29, 2026. The companies determined that closing conditions could not be met within a reasonable timeframe, leading to the collapse of the takeover bid.

Peter Marrone, Chairman and CEO of Allied Gold Corporation, attributed the failure of the deal to a lack of approval from China and complications in finalizing lending, streaming, and security arrangements.

To preserve their business relationship, Zijin Gold agreed to a strategic investment of approximately US$295 million (C$417 million) to acquire a 9.2% stake in Allied Gold. This purchase involves 12.8 million shares priced at C$32.55 each, which represents a premium over the current market value.

Allied Gold intends to utilize the investment proceeds to fund several growth initiatives. These include expanding operations at the Sadiola and CDI Complex sites and ramping up production at the Kurmuk mine in Ethiopia.