Shares in Zijin Mining Group surged to a record high following the announcement of its plan to acquire Canada's Allied Gold Corp. The deal, valued at approximately C$5.5 billion ($4.0 billion), will see Zijin's Hong Kong-listed subsidiary purchase all outstanding Allied Gold shares for C$44 each. This represents a 5.4% premium over the closing price, signaling confidence in the acquisition.

The acquisition is set to expand Zijin's global footprint, providing access to gold mines in Mali and Côte d’Ivoire, along with the Kurmuk project in Ethiopia. The Kurmuk project is anticipated to begin production in the second half of 2026. This move comes as gold prices remain elevated, making the addition of Allied Gold's production capacity particularly attractive.

Following the news, Hong Kong-listed shares of Zijin jumped 4.3% to a record high of HK$44. Allied Gold's annual production could potentially reach 25 tonnes by 2029 after planned expansions. The deal is still subject to shareholder and regulatory approvals. The mining industry has seen consistent M&A activity in recent years as companies seek to bolster reserves.