Mandalay, Alkane Resources set to merge in $357M deal: Employee rights

What’s going on at Mandalay?

Mandalay Resources (Mandalay), a Toronto-based gold miner, and Australia’s Alkane Resources (Alkane) are looking to join forces.

In a joint news release, the two companies announced that they’ve agreed to combine in a “merger of equals” valued at more than $357 million CAD.

“[This all-stock transaction] will take Alkane to a new level, bringing together two companies with complementary assets and a shared vision for growth,” Nic Earner, managing director of Alkane, said in the release.

“Mandalay’s two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside. The combination of assets, leadership, and supportive long-term shareholders enhances our scale and financial strength, and positions us well to continue to pursue additional growth opportunities.”

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Following the completion of the merger, which is currently expected to take place in the third quarter of 2025, the combined entity will operate as “Alkane Resources.”

As the two companies become one, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if the combined company doesn’t want to keep certain employees?

Canadian employees at Mandalay and Alkane will become workers of the combined company by operation of law — unless a specific agreement states otherwise.

If you lose your job before or after the merger, contact an experienced employment lawyer at Samfiru Tumarkin LLP. We can help you secure the severance pay you deserve.

LEARN MORE
• Sale of business in Ontario: Rights to severance
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your rights to severance

Can major changes be made to my job following the merger?

It’s possible for the combined company to make changes to the jobs of Canadian employees at Mandalay and Alkane — if done properly through a new employment contract.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

However, if major modifications are made to the terms of your employment without your consent, don’t do anything drastic (i.e. quit your job) before contacting our firm. There’s a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

ADDITIONAL RESOURCES
• Can my employer make changes to my job in Ontario?
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights

Received a new employment contract?

If you receive a new employment contract from the combined company after Mandalay and Alkane merge, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized employees, including:

• Eliminating past service: The combined company might attempt to reduce or eliminate your years of service prior to the merger. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The combined company might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
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Do Mandalay staff still have the same workplace rights following the merger?

Yes. Companies outside of Canada can’t use employment contracts to get out of Canadian employment standards legislation.

While the combined company will retain the “Alkane Resources” name, it still has to adhere to the same employment laws that Mandalay was required to follow for its Canadian staff.

Workplace issue? Talk to our team

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, or B.C., our lawyers can review your situation, enforce your rights, and ensure you receive the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.