Zijin Mining (02899): Zijin Gold International (02259) terminated the acquisition of United Gold and plans to acquire 9.2% of its shares by subscribing for targeted additional shares

Zhitong Finance App News, Zijin Mining (02899) and Zijin Gold International (02259) made a joint announcement regarding Zijin Gold International's intention to acquire Allied Gold Corporation (United Gold, the Toronto Stock Exchange and the New York Stock Exchange, stock code is AAUC). On January 26, 2026, Zijin Gold International, of Zijin Mining Holdings, signed an “Arrangement Agreement”, agreeing that Zijin Gold International will acquire all of Union Gold's issued common shares at a cash price of 44 Canadian dollars/share, with a total purchase consideration of about 5.5 billion Canadian dollars (about 4 billion US dollars).

Since the signing of the Arrangement Agreement, Zijin Gold International and United Gold have actively promoted delivery-related matters. However, after a comprehensive assessment, the two parties believe that it is still difficult to fully implement or exempt all of the aforementioned delivery prerequisites before and within a reasonable period of time after the completion of the delivery prerequisites agreed in this acquisition agreement (which has been extended to July 29, 2026). Following friendly negotiations, the two parties agreed not to extend the deadline for completion of delivery prerequisites, and signed the “Termination Agreement” on July 29, 2026, agreeing to terminate the acquisition. Both parties to the transaction were not required to pay a termination fee or any other fee to the other party in this regard.

At the same time, after thorough negotiations, the two sides signed a separate “Share Subscription Agreement”. Zijin Gold International plans to subscribe for 12.8 million additional shares of common stock issued by Union Gold at a cash price of 32.55 Canadian dollars/share (that is, the weighted average price of Union Gold shares listed on the Toronto Stock Exchange for the first 30 trading days before July 27, 2026). The total subscription amount is 416.6 million Canadian dollars, or 295 million US dollars.

Joint Gold's core assets include the Sadiola gold mine in Mali, the Ivorian gold mining complex (including Bonikro and Agbaou gold mines), and the Kurmuk gold mine in Ethiopia, which will be completed and put into operation in August 2026. According to publicly disclosed information, by the end of 2025, United Gold had gold resources of about 541 tons, with an average grade of about 1.38 g/ton; United Gold produced 10.7 tons, 11.1 tons, and 11.8 tons in 2023, 2024, and 2025, respectively; Relying on the increase brought about by the renovation and expansion of the Sadiola project and the completion and commissioning of the Kurmuk project, United Gold is expected to increase to 25 tons in 2029.