Equinox Gold and Leagold shareholders approve merger

30 January 2020 (Last Updated June 9th, 2020 09:48)

Canada’s Equinox Gold and Leagold Mining have announced that their shareholders have approved the merger, which will create a gold mining firm with a market capitalisation of approximately $1.75bn.

Canada’s Equinox Gold and Leagold Mining have announced that their shareholders have approved the merger, which will create a gold mining firm with a market capitalisation of approximately $1.75bn.

Announced last month, the deal will see Leagold’s four mines in Mexico and Brazil become part of Equinox’ portfolio, which comprises two mines in the US and one in Brazil.

Under the C$769.3m (approximately $584m) deal, Leagold shareholders will receive 0.331 of an Equinox share and will hold 45% of the combined entity.

The combined entity will reportedly operate under the name Equinox.

The transaction is expected to close next month and subject to regulatory approvals, which also includes from the TSX, the NYSE-A and other customary closing conditions.

In April 2018, Equinox Gold commenced mining activities in the Piaba deposit at its Aurizona gold mine in Brazil with the aim of achieving production and pouring first gold later this year.

In the same year, the company agreed to sell its stake in the Koricancha ore processing facility in Peru to Inca One Gold.

Equinox produces gold from its Mesquite gold mine in California and its Aurizona gold mine in Brazil. It is in the process of constructing Castle Mountain gold mine in California and expects first gold pour in the third quarter this year.

The Castle Mountain mine is located about 320km north of the company’s Mesquite operation.

Last July, Equinox commenced commercial production at Aurizona mine.