Sharewatch: Allied Gold

Gold keeps setting new records, surging towards the $1,200 a troy ounce level this week – and Allied Gold is seizing on this investor appetite. Frank Terranova, chief financial officer has been discussing Allied’s A$56m (£31m) planned acquisition of Gold Ridge and raising C$155m (£89m) to expand the business. Already, 76.22 per cent of Australian Solomon Gold shareholders, who own Gold Ridge, have accepted the offer. So, with its proposed Canadian listing, Allied is set to become a multi-project, diversified miner. From the capital raising, management expects to plough C$27m (£15m) into the oxide plant in Papua New Guinea. But the market will want further resources updates before buying.