Toronto: China’s Zijin Gold International has agreed to buy Canadian mining company Allied Gold Corporation in an all cash deal valued at about 4 billion dollars, marking one of the biggest overseas acquisitions by a Chinese gold producer in recent years.
Under the agreement, Zijin will pay 44 Canadian dollars per share for Allied Gold. The offer represents a premium over the company’s recent share price and gives shareholders a full cash exit. The total value of the transaction is about 5.5 billion Canadian dollars.
Allied Gold owns and operates gold mining projects mainly in Africa, including assets in Mali and Ethiopia. These long life projects are seen as attractive for large miners looking to expand production and secure future resources.
Zijin said the deal fits its strategy of growing its international presence through acquisitions rather than developing new mines from scratch. The company is one of China’s largest gold producers and has been steadily increasing its overseas footprint.
Following the announcement, Allied Gold shares jumped as investors welcomed the cash offer. The transaction is described as friendly and has been approved by the boards of both companies.
The deal still needs approval from Allied Gold shareholders and regulators, including Canadian authorities. If all approvals are received, the companies expect the transaction to close by late April 2026.
The takeover comes at a time when gold prices remain strong and mining companies are seeking to lock in quality assets. Analysts say the deal reflects a wider trend of consolidation in the global gold mining industry, as large producers look to boost output and reduce development risks.
Once completed, the acquisition will strengthen Zijin’s position as a major global player in gold production and expand its operations further into Africa.