Allied Gold Corporation (AAUC) Inches Closer to Zijin Gold Merger

Allied Gold Corp (NYSE:AAUC) is one of the most Oversold Canadian stocks to invest in. On April 1, Allied Gold Corp (NYSE: AAUC) shareholders approved a proposed acquisition of the company by Zijin Gold.

The Hong Kong listed company has agreed to acquire Allied Gold in a transaction that values the company at C$44 a share. The all-cash transaction values the company at an equity value of C$5.5 billion and comes with no financing conditions. Zijin is to acquire the company using cash on hand, with the transaction poised to close by the end of May.

According to Chairman and Chief Executive Peter Marrone, the transaction will provide a highly attractive all-cash offer for the company. It also represents an all-time high for the share price. The planned acquisition comes when Allied Gold Corp’s core asset, including Sadiola, the Côte d’Ivoire complex, and Kurmuk are poised to begin production this year. The mines produce about 375,000 ounces of gold a year.

Allied Gold Corporation (NYSE:AAUC) is an international gold mining company focused on exploring, developing, and operating gold mining assets in Africa, specifically in Mali, Côte d’Ivoire, and Ethiopia. Headquartered in Toronto, Canada, the company operates high-quality mines like Sadiola (Mali) and the CDI complex (Côte d’Ivoire) using open-pit and underground techniques, with a goal to become a senior producer aiming for over 700-800koz of annual gold production.

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