Allied Gold, Zijin finalise strategic investment
Canada-based gold producer Allied Gold has announced the closing of a previously indicated strategic investment by Zijin Gold International Company by way of a non-brokered private placement of 12.8-million common shares for aggregate gross proceeds of C$416.64-million.
Allied plans to use the net proceeds of this strategic investment for the continued advancement of its growth initiatives, including operational optimisations; the completion and ramp-up of the Kurmuk project, in Ethiopia; the phased expansion of the Sadiola project, in Mali; production increases at the Côte d’Ivoire Complex; and exploration efforts across its portfolio.
With the completion of the strategic investment, Zijin holds about 9.2% of the issued and outstanding common shares Allied.
A proposed C$5.5-billion deal for Zijin to acquire all shares in Allied collapsed at the end of July, with the companies then agreeing to the C$416.64-million investment by Zijin instead.
