Allied Gold Announces Termination of Arrangement Agreement with Zijin Gold and a US$295 Million Strategic Investment in Allied Gold by Zijin Gold

Allied Gold Corporation and Zijin Gold terminated their arrangement agreement for an all-cash acquisition at C$44 per share, valued at approximately C$5.5 billion, effective July 29, 2026. The parties cited broader cross-border deal difficulties as the reason for not extending the outside date.

Concurrently, Zijin Gold made a strategic private placement investment of approximately US$295 million (C$417 million) in Allied Gold. The investment involved subscribing for approximately 12.8 million common shares at C$32.55 per share, which represented the 30-day VWAP as of July 27, 2026, and a premium to the last trade of C$29.44.

Following the placement, Zijin Gold will own approximately 9.2% of Allied Gold. The Chairman/CEO and Vice Chairman have entered into four-month lock-up agreements. Closing is expected on or about August 10, 2026, subject to TSX and NYSE approvals.

The proceeds are earmarked for operational optimizations, the completion and ramp-up of the Kurmuk mine with first gold expected in August, the phased expansion of Sadiola, production increases at the Côte d’Ivoire Complex, and exploration.

Allied Gold Corporation (AAUC) announced the termination of its acquisition by Zijin Gold at C$44 per share, a development that removes the remaining upside scenario of a full-control premium. The market had already discounted the deal, with the stock falling from approximately C$43 to C$29.44 as regulatory delays mounted. The formal termination eliminates the buyout alternative, leaving the company as a stand-alone operator with a minority partner rather than facing a certain exit.

In its place, Allied Gold secured a US$295 million strategic investment at C$32.55 per share, representing a 9.2% stake. This transaction is vastly smaller in scale than the previous proposal and carries no takeover premium. The implied enterprise valuation has collapsed compared to the C$5.5 billion buyout. While the injection of cash alleviates near-term funding concerns for the Kurmuk ramp and Sadiola expansion, the loss of the premium floor suggests the equity may be re-rated significantly lower.

The 30-day VWAP price used for the placement was C$32.55, which is above the pre-announcement close, suggesting Zijin acknowledges the intrinsic value. However, this represents only a ~9% premium over the last trade, which is not enough to offset the loss of the C$44 offer. The stock remains vulnerable to a sell-off as risk-arb players exit completely.

Allied Gold Corporation (AAUC) is a mid-tier gold producer operating three mines in West Africa: Sadiola in Mali, and Bonikro and Agbaou in Côte d’Ivoire. The company also holds the Kurmuk development project in Ethiopia.

Sadiola serves as the company’s flagship asset, having recently completed a Phase 1 grinding circuit upgrade with a long-term vision to reach 400,000 ounces per year. The Kurmuk project is approaching first gold production, targeting an output of 290,000 ounces per year at an all-in sustaining cost (AISC) of under $950 per ounce.

Allied Gold holds total proven and probable reserves of 11.16 million ounces across 247 million tonnes grading 1.41 grams per tonne. The company forecasts 2026 production of 485,000 to 575,000 ounces, which includes 100,000 to 150,000 ounces from Kurmuk. The portfolio remains heavily dependent on West African jurisdictions, carrying associated political and security risks.