Zijin Gold (HKG:2259) has terminated the planned $4 billion acquisition of Allied Gold after concluding the deal was unlikely to close by the July 29 deadline, according to a Wednesday Hong Kong bourse filing.
Instead, the company agreed to subscribe for 12.8 million newly issued Allied Gold shares through a private placement at CA$32.55 per share, for a total investment of $295 million.
The transaction will give Zijin Gold International a roughly 9.2% stake in the Canadian gold miner.
The companies stated that neither party will pay a termination fee.
The share subscription remains subject to approvals from the Toronto Stock Exchange and the New York Stock Exchange, as well as other customary closing conditions.