China's Zijin Gold has agreed to buy Allied Gold Corporation, owner of the Kurmuk gold mine in Ethiopia's Benishangul-Gumuz region, for 5.5 billion Canadian dollars in cash. This deal ranks among Africa's largest mining transactions this year and bolsters Ethiopia's position as a global gold producer through the Kurmuk project. The acquisition includes other key African assets, enhancing Zijin Gold's continental footprint.
Announced on January 26, 2026, the agreement marks the final stage for Zijin Gold to purchase Allied Gold Corporation in a cash deal valued at 5.5 billion Canadian dollars, equivalent to roughly 4 billion US dollars. Allied Gold holds three major African projects: Ethiopia's Kurmuk, Mali's Sabiodoula, and Côte d'Ivoire's Kouroussa. Zijin Gold, listed on the Hong Kong Stock Exchange with a market capitalization of about 70 billion dollars, is offering 44 Canadian dollars per share—a 127% premium over the 30-day average—reflecting two years of strategic business positioning. Zijin Gold Chairman Hongfu Lin stated that the deal 'will significantly enhance our influence in Africa, particularly with flagship projects like Kurmuk.' He added, 'As new owners, in Ethiopia, Mali, and Côte d'Ivoire, we will work closely with stakeholders to further develop these projects.' Allied Gold CEO Peter Marrone noted, 'This acquisition provides our shareholders with significant and immediate cash proceeds,' affirming the company's world-class mining status in Africa. The transaction is expected to close by May 2026, pending approvals from the Canadian court, investment regulators, and governments of Ethiopia, Mali, Côte d'Ivoire, and Chinese authorities. Allied Gold shareholders must approve it with a 66.6% vote in a special meeting. The Kurmuk project, with investments exceeding 500 million dollars, features a 12-year mine life and annual gold output over 9 tons, positioning Ethiopia as a major global gold producer as it nears production.
