The Globe and Mail reports in its Tuesday edition that Australia's Alkane Resources is acquiring Canada's Mandalay Resources for $358-million, aiming for a "rerate" in stock-market value by merging operations (all figures U.S.). The Globe's Niall McGee writes that despite high gold prices, many miners struggle to attract investors due to the industry's poor track record and the ease of investing in gold through exchange traded funds. Mandalay investors will receive 7.875 Alkane shares for each share held. The premium is only 2 per cent compared with Mandalay's Friday closing price. The transaction effectively amounts to a reverse takeover, as Alkane is the smaller company by market value, worth about $301-million compared with Mandalay's $350-million. Alkane director Nic Earner says the combined company should benefit from improved size and better access to capital markets. The deal will allow Alkane to join the VanEck Junior Gold Miners ETF and could qualify it for inclusion in the ASX 300. Access to both would result in significant increased demand for the stock. Mr. Earner says, "We're really putting rocket fuel under our ambitions." Mandalay will benefit from increased buying from Australia's pension fund sector.