Zijin Abandons Allied Gold Takeover for $295 Million Stake

China's Zijin Gold International has abandoned its proposed $4 billion takeover of Allied Gold, opting instead for a $295 million stake in the Canadian miner.

The decision comes after months of negotiations, which were complicated by political headwinds and tightened regulations on outbound investments in China.

Allied Gold's biggest mine is Sadiola in Mali, where the company has faced violent attacks from separatist and jihadist rebels. The gold price was also a factor, having increased to an all-time high of over $5,400/oz before cooling down.

Zijin will subscribe for 12.8 million Allied common shares at C$32.55 per share, representing the 30-day volume-weighted average price for Allied shares. The price is below the C$44/share agreed upon in the previous takeover agreement.