Zijin Gold to buy Allied Gold for around $4bn

April 2026 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

April 2026 Issue

In late January, China’s largest gold miner Zijin Gold announced it had agreed to acquire Canadian mining company Allied Gold in an all‑cash deal valued at about $4bn. The agreement, signed on 26 January 2026, offers C$44 per share in cash and implies an equity value of approximately C$5.5bn.

The deal will see Zijin Gold International, a Hong Kong‑listed subsidiary of Zijin Mining, acquire all issued and outstanding shares of Allied Gold. The transaction is subject to shareholder, court and regulatory approvals in Canada, China and other jurisdictions and is expected to close by late April 2026. Directors and officers representing about 15.4 percent of Allied’s shares have signed voting support agreements.

Zijin is one of the world’s largest gold groups. Its gold subsidiary listed in Hong Kong in 2025 to accelerate overseas expansion. Allied Gold, headquartered in Canada and listed in Toronto and New York, has producing assets in Mali and Côte d’Ivoire and is developing the Kurmuk project in Ethiopia, scheduled to begin production in the second half of 2026.

“The announced Transaction provides a highly attractive all-cash offer for Allied Gold at what represents an all-time high for the Company’s share price, crystallizing significant and certain value for its shareholders,” said Peter Marrone, chairman and chief executive of Allied Gold. “The Transaction is also a testament to the exceptional efforts of the entire Allied Gold team to identify, finance, optimize, grow, and develop what we have always known is a world-class portfolio of gold assets across Africa, and it is also an endorsement of these high-quality assets and the mining-friendly jurisdictions where they are located.”

Zijin Gold is a major global miner known for successful international projects and strong operational performance. Its approach mirrors Allied Gold’s focus on sustainability, emphasising safety, employee welfare, environmental responsibility and community engagement. Their shared commitment to resource growth, operational improvement and responsible practices is expected to drive sustained development and create long‑term value.

“Allied Gold has successfully assembled and advanced a portfolio of large-scale, long-life gold assets with compelling expansion potential,” said Hongfu Lin, chairman of Zijin Gold. “As the prospective new owners, we look forward to working with stakeholders in Ethiopia, Mali and Cote d’Ivoire to further advance these operations. Sadiola and Kurmuk are generational assets which we expect to provide multi-decade production, complemented by the meaningful production from the CDI Complex. The acquisition is consistent with our strategy of acquiring high-quality gold assets and expands our presence in Africa.”

The deal is among the largest recent acquisitions of a Canadian‑registered gold producer by a Chinese investor and comes as Canada and China moved to stabilise economic ties. In January, during Prime Minister Mark Carney’s visit to Beijing, the two countries agreed a preliminary arrangement to allow up to 49,000 Chinese electric vehicles into Canada annually at the 6.1 percent most favoured nation tariff, while China is expected to lower canola seed tariffs to about 15 percent by March.

The transaction also lands amid a powerful rally in bullion. Spot gold surged past $5100 an ounce for the first time on 26 January, then set a record near $5589 on 28 January, reinforcing the appeal of long‑life gold assets and the sector’s preference for acquisitions over greenfield projects.

Upon completion, Allied Gold’s shares are expected to be delisted from the Toronto Stock Exchange and the New York Stock Exchange, and the company would cease to be a reporting issuer in Canada and the US. Zijin has indicated the offer carries no financing condition and will be funded from existing cash and available liquidity.

Richard Summerfield