Scrap Monster
Vulcan
Mining News December 17, 2019 11:30:09 AM

Canadian Gold Miner Expands Footprint Across the Americas

Paul Ploumis
ScrapMonster Author
Equinox Gold had recently announced commencement of commercial production at its Aurizona gold mine in northeastern Brazil.

Canadian Gold Miner Expands Footprint Across the Americas

SEATTLE (Scrap Monster): A Canadian gold miner announced addition of assets of a smaller rival to its fold, thereby expanding its geographical footprint. Vancouver-headquartered Equinox Gold acquired Leagold Mining in a deal worth approximately $578 million. The transaction is expected to close in the first quarter of 2020, subject to regulatory approvals.

Further to the merger deal, Leagold shareholders will get 0.331 of an Equinox share for each share they own. Mining veteran Ross Beaty will lead the merged entity, the Board of which will have a total of eight members-four from each company. Equinox Gold and Leagold Mining will hold 55% and 45% ownership stake each in the combined entity. With the acquisition, Leagold’s four mines in Brazil and Mexico will be added to Equinox’s portfolio. It must be noted that Equinox operates two mines in the U.S. and one in Brazil.

ALSO READ: Barrick-Randgold Merger Creates World's Biggest Gold Miner

According to Beaty, the merger will create one of the world’s largest gold companies operating entirely in the Americas. The transaction has received exceptionally strong support from shareholders, he added. It must be noted that the Board of Directors of Equinox Gold and Leagold have unanimously approved the transaction.

Equinox Gold had recently announced commencement of commercial production at its Aurizona gold mine in northeastern Brazil. It also expects to pour first gold from its Mesquite operation during second half next year.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox
Facebook Twitter Linkedin Instagram