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Equinox-Leagod merger approved, creates $1.75bn gold miner

29/01/2020
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Equinox-Leagod merger approved, creates $1.75bn gold miner

Equinox-Leagod merger approved, creates $1.75bn gold miner

(Image Via: Mining.com)

Canada’s Equinox Gold (TSX: EQX) and Leagold Mining (TSX: LMC) have announced that shareholders in both companies have approved their merger, creating an America-focused gold miner with a market capitalization of about $1.75 billion.

As part of the C$769.3 million-transaction, Leagold shareholders will receive 0.331 of an Equinox shares for each share they own and will hold 45% of the combined entity, which will keep the Equinox name.

The new gold miner will be led by mining veteran Ross Beaty, current chairman of Equinox and Pan American Silver (TSX: PAAS), who believes the merged company will have better liquidity and risk diversification.

Beaty said:

“This merger will create one of the world’s largest gold companies operating entirely in the Americas. Our large scale will provide improved liquidity, greater asset and country diversification and a lower risk profile for all shareholders.”

Thanks to the business combination, Equinox will be able to hit one million ounces of gold production by late 2021.
Equinox is also advancing construction at the previously-mined Castle Mountain, located about 320km north of its Mesquite operation, with the target of pouring first gold in the second half of 2020.

The announcement comes on the heels of another gold merger. Kirkland Lake Gold’s C$4.4 billion ($3.35 billion) takeover bid for rival Detour Gold Corp won shareholders’ support on Tuesday at both companies.

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Equinox-Leagod merger approved, creates $1.75bn gold miner - Time to read 2 min
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