Alkane Resources Ltd. (ASX: ALK) and Mandalay Resources Corp. (TSE: MNO) (OTCMKTS: MNDJF) agreed to join forces in a “merger of equals” transaction to create a diversified gold and antimony producer.
Announced on Monday, the company will continue to act on the Australian Securities Exchangea s Alkane Resources, but will reach out for a listing on the Toronto Stock Exchange as well.
The transaction will create a diversified, Australia-centric gold and antimony producer with a portfolio of three operating mines. Alkane’s Tomingley gold mine in Australia will join Mandalay’s established Costerfield underground gold/antimony mine in Australia and the Bjorkdal underground gold mine in Sweden to form the portfolio. Tomingley is presently ramping up after a major capital expansion.
The combined company expects to produce 160,000 gold-equivalent ounces (AuEq) in 2025. Production will grow to over 180,000 AuEq in 2026. The company also expects to expand its margins. It forecasts 2025 all-in sustaining costs (AISC) of USD$1,760 per ounce, falling to about USD$1,420 in 2026.
The merged company expects to benefit from a primary ASX listing valuation re-rate driven by GDXJ and ASX 300 inclusion.
“The transaction presents a compelling opportunity for Mandalay shareholders to accelerate value creation through increased capital market scale, liquidity and a growing diversified asset base,’’ said Frazer Bourchier, Mandalay’s CEO.
“We are excited to have found a like-minded partner committed to the same principles.’’
Mandalay shareholders will receive 7.875 Alkane shares for each Mandalay share. Mandalay shareholders will own 55 per cent of the combined company. The transaction implies a 2.0 per cent premium. Mandalay shares rose 5.6 per cent to $5.42. The combined company’s market cap is estimated at $898 million.
Read more: Promising antimony find in Nevada strongly positions NevGold Corp in minerals race
Read more: NevGold’s long intervals of antimony & gold mineralization turn heads
Trump has multiple domestic options for antimony
Antimony is a critical mineral used in a wide range of industrial applications.
It strengthens alloys, especially lead batteries and ammunition. Antimony compounds also improve flame retardancy in textiles, plastics, and electronics. The mineral is essential for national defense, particularly in military equipment manufacturing. Consequently, global demand for antimony has continued to rise.
China currently dominates the world’s supply, raising concerns about security and stability. Antimony is also important in renewable energy storage technologies. New battery technologies increasingly rely on antimony-based materials. Furthermore, securing antimony supply chains becomes even more important for governments and industries worldwide as energy transition efforts develop.
Understanding its advantage, China slapped an export ban on antimony, gallium, germanium and graphite in December 2024. The United States in response intensified efforts to secure its critical mineral supply chains.
President Donald Trump signed an executive order in April 2025 to expedite permitting for deep-sea mining projects. Additionally, the U.S. is investing in domestic mining initiatives, such as reopening the Yellow Pine mine in Idaho to extract antimony, though full-scale operations are projected for 2027.
However, Trump has several more options.
Beyond the new merger between Alkane Resources and Mandalay Resources, companies like NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) is exploring its Limousine Butte project in Nevada, reporting significant gold-antimony drill results.
Meanwhile, Perpetua Resources Corp. (NASDAQ: PPTA) (TSE: PPTA) Stibnite Gold Project in Idaho aims to supply approximately 35 per cent of U.S. antimony demand during its first six years of production.
Additionally, Liberty Gold Corp (TSE: LGD) (OTCMKTS: LGDTF) plans to spin out its Goldstrike/Antimony Ridge project in Utah into a new U.S. strategic metals company.
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