The planned acquisition of Canada’s Allied Gold Corporation by China’s Zijin Gold International has officially been terminated after both companies concluded that the conditions required to complete the transaction could not be met by the July 29 deadline or within a reasonable timeframe.
Instead, the two companies have agreed on a strategic investment under which Zijin Gold will invest approximately US$295 million in Allied Gold through a private placement.
Under the agreement, Zijin Gold will acquire approximately 12.8 million common shares at C$32.55 per share, generating gross proceeds of about US$295 million (C$417 million). Upon completion of the transaction, Zijin Gold will own approximately 9.2 percent of Allied Gold’s outstanding shares. The investment remains subject to approval by the Toronto Stock Exchange and the New York Stock Exchange and is expected to close on or around August 10, 2026.
Allied Gold said the proceeds will be used to advance its growth strategy, including operational optimization, the completion and ramp-up of the Kurmuk Gold Mine in Ethiopia, the phased expansion of the Sadiola mine in Mali, increased production at its Côte d’Ivoire operations, and exploration across its asset portfolio. The company added that the Kurmuk Mine is expected to begin operations in August, with first gold production anticipated within weeks.
The latest development marks a significant shift from the companies’ original agreement announced in January, under which Zijin Gold had offered to acquire Allied Gold in an all-cash transaction valued at approximately US$4 billion, or C$44 per share.
The takeover had secured regulatory approvals from the jurisdictions where Allied Gold operates, including Ethiopia. However, the transaction faced prolonged delays in obtaining the necessary approvals in China. Although neither the companies nor Chinese authorities publicly disclosed the specific reasons for the delay, Capital has learned that the regulatory process in China ultimately prevented the deal from reaching completion before the agreed deadline.
While the acquisition has now been abandoned, the strategic investment preserves a partnership between the two companies and provides Allied Gold with fresh capital to advance its expansion projects across Africa.
