Allied Gold Abandons Zijin Acquisition Deal Amid Gold Price Slump

Allied Gold Corp., an African-focused gold producer, has terminated its $5.5 billion agreement to be acquired by China's Zijin Gold Co. Intl. Ltd.

The deal was announced on January 26, but the price of gold has since dropped by more than 20% from US$5,090 per ounce to about US$4,030 per ounce as of July 29.

Allied said that both companies have concluded that there is no reasonable likelihood that the conditions relating to completion of the transaction will be fulfilled.