Equinox Gold (TSX: EQX) (NYSE: EQX) and Orla Mining (TSX: OLA) (NYSE: ORLA) Obtained shareholder approval to Their merger is worth $18.5 billionThis creates Canada’s second largest gold producer with an expected annual production of 1.1 million ounces.
The all-stock deal, approved by shareholders of both companies, will see existing Equinox investors own about 67% of the combined company, while Orla shareholders will receive one Equinox share for every Orla share they own. The combined company will operate six mines in North America and will rank second behind Agnico Eagle Mines (TSX, NYSE: AEM) among Canadian gold producers.
“The combination with Equinox significantly strengthens our North American portfolio and catapults us into a significant gold producer with industry-leading growth potential,” Orla President and CEO Jason Simpson. He said. “I am excited about what comes next after this combination with Equinox.”
Independent dealer advisors endorsed the deal earlier this month, saying the merger would diversify Equinox’s asset base, improve strategic flexibility and enhance long-term production capabilities. The deal creates a new North American gold producer with more than 1.1 million ounces of annual production from six operating mines, Equinox CEO Darren Hall said.
Growth pipeline
The two companies expect production to rise by about 70% to more than 1.9 million ounces annually as development projects begin, giving the combined company one of the strongest growth profiles in the sector in politically stable mining regions.
Integration extends Industry consolidation trend Gold miners seek broader scale, lower operating risks and stronger balance sheets while bullion prices remain near record levels.
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