Allied Gold termination of Zijin takeover; $295 million stake investment confirmed

Allied Gold Corp. and Zijin Gold International announced the termination of their acquisition agreement after concluding that the required closing conditions were unlikely to be satisfied by the July 29 2026 deadline. Instead of completing the takeover, Zijin will provide a strategic private‑placement investment of roughly US$295 million (C$417 million), purchasing about 12.8 million Allied Gold shares at C$32.55 each, which will give Zijin an approximately 9.2% ownership stake.

The funding is earmarked for Allied Gold’s growth projects across Africa, including the phased expansion of the Sadiola gold mine in Mali, the ramp‑up of the Kurmuk mine in Ethiopia, and further development at its Côte d’Ivoire complex. The announcement sent Allied Gold’s share price down about 18 % on the news. Chinese regulators, notably the National Development and Reform Commission, raised concerns over the premium and geopolitical risks of Allied’s assets in Mali and Ethiopia, contributing to the deal’s collapse.

The original proposal valued Allied Gold at roughly US$5.5 billion, with a cash offer of $44 per share. With the acquisition abandoned, both companies cited broader external factors affecting large cross‑border transactions. Zijin’s new stake and investment keep it involved in Allied Gold’s future while ending the full‑takeover plan.