Mandalay–Alkane merger clears Swedish regulatory hurdle
Mandalay Resources and Alkane Resources have received regulatory approval from Sweden for their proposed merger of equals.
The Swedish Inspectorate of Strategic Products, which oversees foreign direct investment under the Swedish FDI Act, has decided not to initiate a review of the transaction, thereby allowing it to proceed under Swedish law.
Mandalay operates the Björkdal mine, in the Boliden mining district of Sweden, producing about 46 000 oz/y of gold, besides its operations in Australia.
The proposed merger, announced earlier this year, will see Alkane indirectly acquire all of the issued and outstanding common shares of Mandalay through a plan of arrangement under the Business Corporations Act of British Columbia.
The transaction remains subject to several other regulatory and shareholder approvals, including those from the Supreme Court of British Columbia, the Foreign Investment Review Board of Australia, and the shareholders of both Mandalay and Alkane. The companies will hold their respective shareholder meetings in late July.
The merger aims to create a diversified gold producer with operations in Australia and Sweden.
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