Zijin Mining Terminates Allied Gold Acquisition, Will Invest $295 Million for 9.2% Stake
Zijin Mining announced on July 29, 2026, that it has terminated its previously announced plan to acquire all outstanding shares of Allied Gold Corporation for 44 Canadian dollars per share. The decision to terminate the acquisition was made because the closing conditions could not be fully met or waived by the deadline. No termination fees will be paid by either party.
Concurrently, Zijin Gold International, a subsidiary of Zijin Mining, signed a separate share subscription agreement. Under this new agreement, Zijin Gold International will purchase 12.8 million newly issued common shares of Allied Gold Corporation through a private placement. The subscription price is set at 32.55 Canadian dollars per share, totaling approximately 417 million Canadian dollars, which is equivalent to about 295 million U.S. dollars. This investment will give Zijin Gold International a 9.2% ownership stake in Allied Gold Corporation after the private placement is completed.
Zijin Mining's strategic shift from a full acquisition to a significant minority stake in Allied Gold Corporation suggests a recalibration of risk and reward. The inability to meet acquisition conditions may reflect unforeseen due diligence findings or evolving market dynamics. The subsequent private placement indicates continued strategic interest, potentially at a more favorable valuation, allowing Zijin to gain influence and future opportunities without the full integration complexities and capital outlay of a takeover. This approach could be a response to capital allocation priorities or a strategy to de-risk by securing a substantial, but not controlling, interest in a company deemed valuable for its resource potential, aligning with long-term industry trends toward resource security and selective investment.
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