Allied Gold has confirmed the termination of an arrangement agreement with Zijin Gold International Company, a fully owned subsidiary of Zijin Mining Group.

In January this year, Zijin Gold entered into a definitive agreement to purchase all the issued and outstanding shares in Allied Gold for C$5.5bn ($4.01bn).

The companies concluded that the conditions for completing the transaction were unlikely to be satisfied by the 29 July 2026 deadline or within a reasonable time frame thereafter.

The agreement was related to a potential deal between the two companies, but external factors affecting large cross-border transactions led to its cancellation.

Despite the termination of the agreement, Zijin Gold will make a strategic investment of approximately 1.99bn yuan in Allied Gold.

The investment will consist of a private placement of approximately 12.8 million Allied Gold common shares at a subscription price of C$32.55 per share.

Upon completion, Zijin Gold will hold roughly 9.2% of Allied Gold’s issued and outstanding shares.

Completion of the share subscription is subject to approval from the Toronto Stock Exchange and the New York Stock Exchange and is expected to take place on or around 10 August 2026.

The new shares issued to Zijin Gold will be subject to a statutory hold period of four months and one day under Canadian securities laws.

Allied Gold’s chairman and CEO, along with its vice-chairman, have also agreed to lock-up arrangements matching the hold period for these shares.

The company plans to use the net proceeds from the investment to support its ongoing growth initiatives including operational optimisations and the completion and ramp-up of the Kurmuk project.

Additional priorities include the phased expansion of Sadiola, an increase in production at the Côte d'Ivoire Complex and further exploration activities.

Stifel Nicolaus Canada served as Allied Gold’s financial advisor regarding the strategic investment by Zijin Gold.