Allied Gold Corp. and Zijin Gold International Co. spent months trying to put together a deal worth C$5.5 billion.
In U.S. dollars, that is $3.9 billion.
The deadline was August 6, 2026. The original transaction had already been stuck for months, and Beijing's tighter reviews of overseas investments left Chinese approval in doubt.
Around the same time, a recent rise in rebel attacks near Allied's main Sadiola mine in Mali added to outside concerns. Marrone downplayed those worries, calling the security issues and price disagreements "surmountable" and saying they probably would not have been major obstacles to Chinese regulatory approval.
The merger may be dead, but the relationship is not.
That works out to 12.8 million shares.
The purchase price is C$32.55 per share. Marrone said the deal puts Allied in a "better position" and leaves room for more talks.
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The purchase gives Zijin a 9.2% stake in Allied. It is a minority stake, but it gives Zijin a real seat at the table.
It could also let Allied use cheaper Chinese technology to improve metal extraction from its Malian mines. That kind of cost advantage can matter a lot in a business where every ounce counts.
Marrone is not closing the door on a bigger deal. "If at some point in the future they, or anyone else, want to present what is a fair price that we would feel compelled to bring to our shareholders, so be it," he said.
He also said Zijin's interest in Allied was never in doubt. "It was very apparent to us that they were very interested in these assets and very interested in buying us," he said.
"Every jurisdiction will have its geopolitical security and other challenges or concerns," he said.
Allied plans to use the money from the share sale for growth initiatives. The first step is making its new Kurmuk project in Ethiopia commercially operational.
Marrone expects Kurmuk to be inexpensive to operate and calls it a "cash machine" that should generate strong cash flow. After that, Allied plans to expand its Mali operations in phases.
That timeline means the company is not planning to sit still.
The failed merger was a big headline, but the follow-up stock sale may matter more for Allied's future. Zijin's cash gives Allied room to move.
It also connects Allied with a major industry player that already wanted to buy the whole company. That kind of interest does not disappear just because the first deal fell through.
For investors, the real test is what Allied does next with the money and whether Kurmuk lives up to the "cash machine" description. If it does, Allied's cash flow could look noticeably stronger, and if it comes up short, Allied still has Zijin's money and a clear plan for phased growth in Mali.
Either way, the lesson for investors is simple: a failed merger is not always the end of the story. Sometimes the follow-up deal is the one that matters for your portfolio.
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