Allied Gold Announces Closing of Strategic Investment by Zijin Gold
Allied shares trade at a steep discount to the $44 acquisition offer after the Zijin deal closed at $32.55.
Allied Gold Corporation (AAUC) announced the closing of a strategic investment from Zijin Gold International Company Limited through a non-brokered private placement. The transaction involved the issuance of 12,800,000 common shares at C$32.55 per share, generating gross proceeds of C$416.64 million, or approximately $295 million USD.
Following the transaction, Zijin Gold holds approximately 9.2% of Allied Gold’s issued and outstanding shares. The agreement includes customary participation and top-up rights, allowing Zijin to maintain its pro rata interest until ownership falls below 5% on a non-diluted basis. The capital will be used to advance growth initiatives, including operational optimizations, the completion and ramp-up of the Kurmuk project, the phased expansion of the Sadiola project, production increases at the CDI Complex, and portfolio-wide exploration.
A statutory lock-up period of four months and one day applies, ending December 11, 2026. Additionally, the company’s Chairman, CEO, and Vice Chairman voluntarily entered matching lock-up agreements. This deal closes the revised financing announced on July 29, 2026, which terminated a previous acquisition arrangement valued at $44 per share due to the unlikelihood of meeting completion conditions.
Allied Gold Corporation (AAUC) closed its strategic investment with Zijin, securing approximately $295 million in liquidity to directly fund the Kurmuk ramp-up and Sadiola expansion. This capital injection de-risks project execution and removes the immediate need for additional equity or debt financing.
The deal structure marks a material downgrade from the prior $44 per share acquisition offer. The market initially priced in this change, with the stock falling from approximately $43.00 to $24.00 on July 29. The closing price of C$32.55 (approximately $24.50 USD) represents a premium to the post-termination market but still reflects a 30% discount to the original acquisition premium.
The stock has recovered approximately 25% from its July low to reach $30.50, indicating the market views the closing as a positive liquidity event, although the valuation still discounts the lost acquisition premium.
Allied Gold Corporation (AAUC) operates a portfolio of long-life, low-cost gold assets across West Africa and Ethiopia. Its core producing asset, Sadiola in Mali, is undergoing a Phase 1 expansion completed in December 2025, with planning for Phase 2 underway to target 200,000 to 230,000 ounces per year in the medium term.
The company also manages the CDI Complex in Côte d’Ivoire, which includes integrated operations at Bonikro and Agbaou. These operations are targeting 200,000 ounces per year for more than 10 years, with the Bonikro mine life extended to 2036. Additionally, the Kurmuk project in Ethiopia is in the development stage, targeting approximately 290,000 ounces per year over its first four years. The project is on budget and on schedule for a start-up in August 2026.
Strategic priorities for Allied Gold include operational optimization, energy cost reduction through a hybrid power program at Sadiola, and exploration-driven reserve replacement.