Allied Gold Corp. announced that the previously announced arrangement agreement between the company and Zijin Gold has been terminated as both companies have concluded that there is no reasonable likelihood that the conditions relating to completion of the transaction will be fulfilled by the outside date of July 29 or within any reasonable time thereafter.

The company, however, announces that Zijin Gold has agreed to make a strategic investment in Allied of approximately $295M, at a subscription price representing a premium to the current market price of the company’s common shares on the Toronto Stock Exchange. In accordance with its terms, the arrangement agreement has been terminated effective as of today’s date.

The parties have mutually agreed not to extend the outside date further, as they have determined that it is unlikely the closing conditions will be fulfilled within any reasonable time following the outside date.

Allied Gold plunges over 15% in pre-market trading.