Zijin Mining Acquires Allied Gold for $4 Billion Amid Record Bullion Rally

2026-01-27 companies

Toronto, Monday, 26 January 2026.
With gold surpassing US$5,000 per ounce, Zijin Mining secures Allied Gold’s African portfolio in a C$5.5 billion all-cash deal, capitalizing on thawing Canada-China trade relations.

Strategic Consolidation in a High-Value Market

In a decisive move to expand its international footprint, Chinese mining giant Zijin Mining Group, through its subsidiary Zijin Gold International, has entered into a definitive agreement to acquire Canadian miner Allied Gold (AAUC.TO) in an all-cash transaction valued at approximately C$5.5 billion ($4.02 billion) [1][2]. The acquisition, announced today, Monday, January 26, 2026, offers Allied Gold shareholders C$44 per share [2]. This offer represents a premium of approximately 5.389% over the stock’s last closing price of C$41.75 on the Toronto Stock Exchange [4], and a 27% premium over the company’s 30-day volume-weighted average price as of January 23, 2026 [2]. The deal underscores the intense consolidation currently reshaping the mining sector, driven by a historic rally in precious metals.

African Assets Fueling Growth

The transaction provides Zijin with immediate access to a robust portfolio of African assets, aligning with the company’s strategy to secure long-life resources rather than developing new mines from scratch [1]. Allied Gold’s portfolio includes three producing mines—the Sadiola mine in Mali, operations in Côte d’Ivoire, and the Kurmuk project in Ethiopia [3][4]. These assets have been pivotal for Allied, with production reaching up to 400,000 ounces of gold over the past year [3]. The acquisition comes at a time when gold prices have surged to unprecedented levels, recently surpassing US$5,000 per ounce [6]. This price environment has significantly boosted margins and cash flows for producers, incentivizing major players like Zijin to aggressively pursue scale [1][6].

Geopolitical Thaw Facilitates Cross-Border Investment

This high-profile acquisition occurs against a backdrop of improving diplomatic and economic relations between Canada and China. Earlier this month, the two nations reached a preliminary agreement to reduce tariffs on electric vehicles and canola, signaling a mutual intent to ease trade barriers and strengthen strategic cooperation [1]. This diplomatic thaw may prove critical for the deal’s completion, as it requires approval under the Investment Canada Act [4]. While the Canadian government previously blocked Shandong Gold Mining’s acquisition of TMAC Resources in 2020 due to national security concerns [6], the current climate suggests a more favorable environment for Chinese investment in Canadian-domiciled mining firms.

Market Reaction and Analyst Perspectives

Market analysts have offered mixed reactions regarding the valuation. Mohamed Sidibé, a mining analyst at National Bank Financial, noted that while the all-cash offer solidifies value near all-time highs, it might be perceived as conservative given the potential re-rating of Allied Gold as it delivers on its Kurmuk project in 2026 [3]. However, Sidibé also highlighted that the cash deal removes uncertainties associated with operational ramp-ups or potential geopolitical instability in Mali [3]. Peter Marrone, Allied Gold’s Chairman and CEO, defended the valuation, stating that the transaction crystallizes significant value for shareholders at an all-time high share price following a strategic review initiated in 2024 [2][3].

Timeline and Conditions

The transaction is expected to close by late April 2026, subject to approval by a two-thirds majority of Allied Gold shareholders and customary regulatory clearances [2]. Under the terms of the agreement, Allied Gold would be liable to pay a termination fee of C$220 million to Zijin if the deal is cancelled under specific conditions [1]. Upon completion, Allied Gold’s shares will be delisted from both the Toronto Stock Exchange and the New York Stock Exchange [2].

Sources

Mergers Acquisitions Gold Mining