Zijin Gold to Buy Allied Gold for C$5.5B, Deepening African Reach

TORONTO, ON – January 26, 2026 – In a major move set to reshape a corner of the global gold mining landscape, China's Zijin Gold International Company Limited has agreed to acquire Canada-based Allied Gold Corporation in a friendly, all-cash transaction valued at approximately C$5.5 billion. The deal sees Zijin Gold paying C$44 for each share of Allied Gold, a price that represents an all-time high for the Canadian miner's stock.

The offer delivers a significant 27% premium over Allied Gold’s 30-day volume-weighted average trading price on the Toronto Stock Exchange as of January 23, 2026. The announcement sent Allied Gold's US-listed shares climbing nearly 4% in premarket trading, signaling strong investor approval for the substantial premium and the certainty of an all-cash payout.

A Golden Handshake for Shareholders

The transaction is being presented as a decisive victory for Allied Gold's investors, crystallizing years of growth and development into immediate, tangible value. The deal is the culmination of a comprehensive strategic review process that Allied Gold initiated in 2024 to explore ways to maximize shareholder value, which included examining joint ventures, asset acquisitions, and other business combinations.

Peter Marrone, Chairman and CEO of Allied Gold, praised the deal's terms. “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,” he stated. The all-cash nature of the offer, funded from Zijin's existing cash balances, removes financing risks and market volatility for Allied Gold's shareholders ahead of the deal's closing.

This acquisition comes after a period of stellar performance for Allied Gold, whose stock delivered a remarkable 265% return over the past year. The board's unanimous recommendation to approve the sale is backed by voting support agreements from directors and officers who represent approximately 15.4% of the company's outstanding shares. Scotiabank, acting as a financial advisor to a special committee of Allied Gold's board, has also provided an opinion that the offer is financially fair to shareholders.

Zijin's Strategic Expansion in Africa

For Zijin Gold, a subsidiary of the nearly US$70 billion Hong Kong-listed Zijin Mining Group, the acquisition is a strategic masterstroke that significantly deepens its presence in Africa's resource-rich mining jurisdictions. The deal adds Allied Gold’s portfolio of producing assets and development projects in Côte d'Ivoire, Mali, and Ethiopia to Zijin's sprawling global operations.

Zijin has specifically identified Allied's Sadiola mine in Mali and the developing Kurmuk project in Ethiopia as “generational assets” with multi-decade production potential. “The acquisition is consistent with our strategy of acquiring high-quality gold assets and expands our presence in Africa,” commented 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.”

The move is part of a broader trend of consolidation in the gold industry, where major producers are leveraging high commodity prices to acquire established, long-life assets rather than pursuing riskier and more time-consuming greenfield development. With its strong balance sheet and a successful Hong Kong IPO in 2025, Zijin Gold International is well-positioned to execute such large-scale acquisitions and integrate them into its global strategy.

Future of Allied Gold's African Projects

Under Zijin's ownership, Allied Gold's African assets are poised for a new phase of investment and development. The infusion of capital and operational expertise from one of the world's largest mining companies is expected to accelerate growth and optimize production across the portfolio.

The Kurmuk project in Ethiopia, set to commence production in the second half of 2026, is a key prize in the deal. Its successful development is expected to be a major growth driver. Meanwhile, the Sadiola mine in Mali and the CDI Complex in Côte d'Ivoire, which provide a stable production base, will benefit from Zijin's track record of operational excellence. Allied Gold’s annual output is projected to climb to 25 tonnes by 2029 following planned upgrades and expansions under the new ownership.

In the announcement, both companies emphasized a shared commitment to sustainability. Marrone noted that Zijin Gold “shares Allied Gold’s sustainability values, prioritizing employee safety and well-being, environmental performance, and fostering meaningful engagement and collaboration with external stakeholders.” This alignment will be critical for maintaining the social license to operate in its African host countries.

Navigating Regulatory Hurdles and Market Dynamics

While the boards and key shareholders have given their blessing, the transaction is not yet a foregone conclusion. It remains subject to a number of closing conditions, including customary court approval in Canada and the approval of 66⅔% of votes cast by Allied Gold shareholders. Following completion, Allied Gold’s shares will be delisted from both the TSX and NYSE.

More significantly, the deal must clear regulatory reviews in multiple jurisdictions. This includes approval under the Investment Canada Act, where transactions of this size involving foreign entities, particularly in strategic sectors like mining, often undergo a thorough net-benefit and national security review. The deal also requires clearance from regulators in the People's Republic of China, which governs major outbound investments by its corporate champions.

The agreement includes a C$220 million termination fee payable by Allied Gold under certain circumstances, a standard provision that underscores the commitment of both parties to navigate the complex approval process. This major acquisition is unfolding against the backdrop of a roaring gold market, with prices recently surging past a record $5,100 per ounce, providing a powerful economic rationale for consolidation. The parties anticipate completing the transaction by late April 2026, a timeline that hinges on the successful and timely navigation of these international regulatory landscapes.