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Mining News December 17, 2020 03:30:49 PM

Equinox Gold Announces New Purchase Agreement to Acquire Premier Gold Mines

Paul Ploumis
ScrapMonster Author
According to company press release, i-80 Gold Corp. will own the South-Arturo and McCoy-Cove properties.

Equinox Gold Announces New Purchase Agreement to Acquire Premier Gold Mines

SEATTLE (Scrap Monster): Equinox Gold Corp. and Premier Gold Mines Limited have entered into a definitive agreement, whereby the former will acquire all of the outstanding shares of the latter. Also, Premier will spin out its Nevada assets to create a U.S.-focussed gold production and development company named i-80 Gold Corp. The all-stock deal is valued at $480 million.

According to company press release, i-80 Gold Corp. will own the South-Arturo and McCoy-Cove properties. Further, it will complete Premier’s previously announced acquisition of the Getchell Project in Nevada. Also, Equinox Gold will retain Premier’s interest in the world-class Hardrock Project in Ontario, the Mercedes Mine in Mexico, and the Hasaga and Rahill-Bonanza properties in Red Lake, Ontario.

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Upon closing of the transaction, existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold. Also, Equinox Gold and existing shareholders of Premier will own 30% and 70% of i-80 Gold, respectively.

Ross Beaty, Chairman, Equinox Gold noted that the transaction represents the same accretive Americas-focused growth that the company had promised its shareholders, while starting the company in 2018. The transaction will further solidify the company’s position as the premier U.S-focused gold producer, he noted.

 

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