2259.HK2impact 4
Allied Gold says Zijin Gold terminates takeover but secures $295 million investment
Allied Gold announced that its planned C$5.5 billion sale to China's Zijin Gold has been terminated after the companies concluded there was no reasonable likelihood of satisfying closing conditions by the July 29 deadline. Instead, Zijin Gold will make a strategic investment of approximately $295 million in Allied Gold, agreeing to purchase 12.8 million common shares at C$32.55 each, representing a 10% premium to the last closing price. The original deal, announced in January, had Zijin agreeing to acquire Allied for C$44 per share. Separately, Allied Gold reported preliminary second-quarter gold production of 97,429 ounces, bringing half-year production to 193,445 ounces.