Canadian gold miner Allied Gold Corp. has terminated its proposed C$5.5 billion ($3.9 billion) acquisition by China’s Zijin Mining, citing an inability to satisfy closing conditions by the agreed July 29 deadline.
The two companies have instead agreed to a new arrangement under which Zijin will take a 9.2% stake in Allied Gold, effectively pivoting from a full takeover to a minority investment.
The termination of the deal marks a significant shift in the cross-border mining landscape, where regulatory hurdles and geopolitical tensions have increasingly complicated large-scale acquisitions.
Allied Gold’s decision to walk away from the merger highlights the growing challenges faced by Chinese miners seeking to expand their footprint in Western jurisdictions.
The new minority stake allows Zijin to maintain a strategic interest in Allied Gold’s assets without the complexities of a full acquisition.
Investors will be closely watching how this development impacts Allied Gold’s share price and the broader gold sector.