Mandalay Resources to acquire Elgin Mining, owner of the Björkdal gold mine
Mandalay Resources Corporation and Elgin Mining Inc. have entered into an arrangement agreement pursuant to which Mandalay will acquire Elgin for consideration consisting of cash and shares. The total transaction value is approximately CAD 70 million (approximately SEK 425 million).
Elgin is a Canadian-based company mainly focused on production at the Björkdal gold mine in Sweden. Björkdal, located in Skellefteå, is an underground and open pit gold mine which employs approximately 160 employees and contractors. Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and producing and development projects in Chile. Both Elgin and Mandalay are listed on the Toronto Stock Exchange.
Mandalay Resources was advised by Mannheimer Swartling acting as Swedish counsel in the transaction. The firm’s team was led by Hampus Thofte, primarily assisted by Jakob Wijkander and Evelina Anttila in New York and Staffan Löwhagen, Jennie Knutsson, Carl Lindberg and Christopher Lundqvist in Stockholm.