Allied Gold drops as sale to Zijin is terminated

U.S.-listed shares of Allied Gold AAUC.N AAUC.TO fell more than 13% to $18 in premarket trading after the company said its planned C$5.5 billion ($3.90 billion) sale to China's Zijin Gold 2259.HK had been terminated.

The company said the two sides concluded they were unlikely to satisfy closing conditions by the agreed deadline.

"The termination of the Arrangement Agreement relates to broader external factors applicable to cross-border transactions of this scale," the company added.

Allied Gold also said Zijin has agreed to invest $295 million in the company for a 9.2% stake.

As of the last close, AAUC shares were down 8.92% year to date.