Zijin’s $4 Billion Allied Gold Takeover Collapses, Strategic Investment Keeps Partnership Alive

Toronto: Chinese mining giant Zijin Gold and Canadian miner Allied Gold have officially terminated their planned C$5.5 billion (approximately US$4 billion) acquisition after regulatory approvals in China failed to materialize before the transaction deadline. Despite the collapse of one of the mining industry’s biggest gold deals of 2026, Zijin has reaffirmed its commitment to Allied by acquiring a 9.2% strategic equity stake through a private placement valued at approximately US$295 million.

The acquisition, first announced in January 2026, was expected to give Zijin control of Allied Gold’s producing mines and development projects across Mali, Ethiopia, and Côte d’Ivoire. However, both companies stated that the remaining conditions for closing the transaction were unlikely to be satisfied within a reasonable timeframe, leading to a mutual decision to let the agreement expire. Reports indicate that delays in securing Chinese regulatory clearance and broader challenges surrounding large cross-border mining transactions contributed to the outcome.

Although the full takeover has been abandoned, Zijin will purchase approximately 12.8 million newly issued Allied Gold shares at C$32.55 per share, providing Allied with fresh capital to accelerate key growth projects. The funding will support the completion and ramp-up of the Kurmuk Gold Project in Ethiopia, expansion of the Sadiola Mine in Mali, increased production at its Côte d’Ivoire operations, and ongoing exploration activities across its portfolio.

Following the announcement, Allied Gold’s shares declined sharply as investors reacted to the failed takeover. Nevertheless, analysts view Zijin’s minority investment as a sign of continued confidence in Allied’s long-term asset base and production growth prospects. The development also highlights the growing impact of regulatory scrutiny and geopolitical considerations on major international mining mergers and acquisitions.