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Mining News March 03, 2020 04:30:34 PM

Mexico's Anti-trust Agency Okays Equinox Gold-Leagold Merger

Paul Ploumis
ScrapMonster Author
The all-share transaction worth approximately $769.3 million, will add Leagold’s four mines in Mexico and Brazil to Equinox’s two mines in the U.S. and Brazil.

Mexico's Anti-trust Agency Okays Equinox Gold-Leagold Merger

SEATTLE (Scrap Monster): The merger deal between Equinox Gold Corp. and Leagold Mining Corporation received clearance nod from the Comisión Federal de Competencia Económica ("COFECE") in Mexico. With this, the deal is reportedly in receipt of all necessary government agency approvals. The merger transaction is now expected to close during the second week of March 2020.

The all-share transaction worth approximately $769.3 million, will add Leagold’s four mines in Mexico and Brazil to Equinox’s two mines in the U.S. and Brazil. Leagold will hold 45% stake in the combined entity, whereas the remaining 55% stake will be owned by Equinox Gold. The newly formed entity, named Equinox Gold, will be headed by mining industry veteran Ross Beaty and will be one of the world’s leading gold producers with entire operations in the Americas.

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Christian Milau, CEO, Equinox stated that the strategic merger will result in significant increase in annual gold production and provide the shareholders with exceptional leverage to gold.

Earlier in September 2018, Equinox had entered into a deal with New Gold Inc., to acquire the Mesquite gold mine in California, whichj established it as a leading gold producer in the region.

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