Australian mining company Alkane Resources has signed a definitive arrangement agreement with Canadian miner Mandalay Resources for a "merger of equals" to create a diversified gold and antimony producer.

Australia's Alkane Resources will acquire Canada's Mandalay Resources in an all-share deal valued at A$559.1 million ($357.8 million), the companies said on Monday, creating a combined diversified gold and antimony producer.

Australia's Alkane Resources and Canada’s Mandalay Resources have agreed to merge in an all-share transaction valued at about A$1.01-billion (C$898-million), creating a diversified gold and antimony producer with operations in Australia and Sweden.