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Allied Gold Completes C$416.6 Million Strategic Investment by Zijin Gold

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Allied Gold (AAUC.TO) after trade Monday said it completed its strategic investment by Zijin Gold, which was made via a private placement of 12.8-million shares at C$32.55 per share, generating gross proceeds of C$416.64 million.

The company said it plans to use the net proceeds to support its growth initiatives, including operational improvements, the completion and ramp-up of Kurmuk, the phased expansion of Sadiola, increased production at the CDI Complex, and exploration across its portfolio.

Following the investment, Zijin Gold owns about 9.2% of Allied's outstanding shares. Zijin Gold also has customary participation and top-up rights to maintain its ownership percentage until its stake falls below 5% on a non-diluted basis, according to the statement.

Allied Gold in late July it would not go ahead with a planned sale to Zijin Gold as both companies did not foresee the agreement's conditions being satisfied by the outside date of July 29.

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