Chinese mining giant Zijin Mining Group has unveiled plans to acquire Canadian miner Allied Gold Corporation in a landmark cash transaction valued at approximately C$5.5 billion (US$4.02 billion). The strategic move signals Zijin’s continued global expansion efforts, strategically timed during a period of unprecedented gold prices that have significantly enhanced profitability across the mining sector.
The acquisition comes as gold prices maintain record-breaking levels driven by global economic uncertainties and increased demand for safe-haven investments. These market conditions have made gold mining companies particularly attractive to investors while accelerating industry consolidation trends.
Under the agreement terms, Zijin will pay C$44 per share, representing a 5.4% premium over Allied Gold’s recent closing price. The announcement immediately triggered a nearly 4% surge in Allied’s premarket trading activity in U.S. markets. Allied Gold CEO Peter Marrone emphasized that the transaction delivers “significant value for shareholders” while highlighting the scale of the company’s African gold portfolio.
The transaction, expected to finalize by late April 2026, occurs against the backdrop of improving Canada-China trade relations. Both nations recently reached preliminary agreements to reduce import tariffs on electric vehicles and canola oil while committing to further diminish trade barriers and enhance strategic cooperation.
Zijin, ranking among the world’s largest gold producers with operations across nine countries, demonstrated strong market performance following its Hong Kong listing last year, bolstered by the sustained gold price rally. The company maintains significant presence in Suriname through its ownership of Rosebel Gold Mines, one of the country’s largest gold operations that plays vital role in the Surinamese economy.
The acquisition agreement includes a termination clause requiring Allied to pay Zijin C$220 million if the deal fails under specified conditions. This move exemplifies broader industry trends where major producers expand their portfolios through strategic acquisitions of long-life assets rather than exclusively investing in new mine development.