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EN
Zijin ditches Allied Gold takeover for $295m stake instead
['David Mckay']
Miningmx
CHINA’S Zijin Gold International has abandoned its proposed takeover of Allied Gold, opting instead to take a $295m stake in the Canadian miner.
The gold price was also trading at about $5,000/oz at the time of the deal.
In terms of today’s announcement, Zijin will subscribe for 12.8 million Allied common shares at a price of C$32.55 per share, representing the 30-day volume-weighted average price for Allied shares.
The price Zijin is paying is below the C$44/share it had agreed to pay in the previous agreement to buy the company.
On completion, Zijin will hold approximately 9.2% of the issued and outstanding common shares of Allied.