Alkane Resources (ASX:ALK) and Mandalay Resources Corporation (TSX:MND) have agreed to combine in a merger to create a diversified gold and antimony producer. 

Its a huge boost for the Tomingley project bringing more jobs to the Western Plains.

Antimony is classified as a critical mineral by governments around the world, including Australia, and has been in use since ancient times.

These days it is considered vital in industries from electronics to defence and renewable energy.

The prospects for gold+antimony mining in NSW are rated as excellent.

Alkane Managing Director Nic Earner says the transaction will take Alkane to a new level, bringing together two companies with complementary assets and a shared vision for growth.

"Mandalay’s two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside.

"The combination of assets, leadership, and supportive long-term shareholders enhances our scale and financial strength, and positions us well to continue to pursue additional growth opportunities”.

He says the merged company will have a robust balance sheet with a pro-forma cash balance of $188 million as at 31 March 2025 to pursue organic and inorganic growth. 

Under the transaction, Mandalay shareholders will receive 7.875 ordinary shares of Alkane for each share of Mandalay held immediately prior to the effective time of the transaction. 

Upon completion, former Mandalay shareholders and existing Alkane shareholders will own 55% and 45%, respectively, of the outstanding shares of the combined company on a diluted basis. 

Mining.com.au says ‘Mandalay has engaged Haywood Securities as exclusive financial advisor, Goodmans as Canadian legal advisor, Clayton Utz as Australian legal advisor, and Gencap Mining Advisory. 

'Alkane engaged Bell Potter Securities and Euroz Hartleys as joint financial advisors, Hopgood Ganim as Australian legal advisor and Bennett Jones as Canadian advisor to the transaction. 

'The implied market capitalisation of the merged company is forecast to be $1.013 billion.'

The company plans to continue to invest in exploration at all three of its producing mines in Australia and Sweden, as well as pursue other growth opportunities in addition to the Boda-Kaiser copper-gold project, which adds future production potential. 

Alkane Resources owns the Tomingley Gold and Northern Molong Porphyry projects, as well as other exploration prospects considered prospective for gold, copper, nickel, zinc and silver in New South Wales. 

Mandalay Resources owns the Costerfield Gold-Antimony Mine in Australia, alongside the Björkdal Gold Mine in Sweden.