{"id":1162431,"date":"2020-01-29T05:55:32","date_gmt":"2020-01-29T11:55:32","guid":{"rendered":"https:\/\/www.mining.com\/?p=1012378"},"modified":"2020-01-29T05:55:32","modified_gmt":"2020-01-29T11:55:32","slug":"equinox-leagod-merger-approved-creates-1-75bn-gold-miner","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1162431","title":{"rendered":"Equinox-Leagod merger approved, creates $1.75bn gold miner"},"content":{"rendered":"<p>Canada\u2019s Equinox Gold (TSX: EQX)<br \/>\nand Leagold Mining&nbsp;(TSX: LMC) said on Wednesday that shareholders in both<br \/>\ncompanies <a href=\"https:\/\/www.equinoxgold.com\/investors\/news-centre\/equinox-gold-and-leagold-shareholders-approve-merger-to-create-a-premier-americas-gold-producer\">have<br \/>\napproved their merger<\/a>, creating an America-focused gold miner with a market<br \/>\ncapitalization of about $1.75 billion.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The deal, <a href=\"https:\/\/www.mining.com\/canadas-equinox-gold-buys-smaller-rival-leagold-in-578-million-deal\/\">announced<br \/>\nin December<\/a>, adds Leagold\u2019s four mines in Mexico and Brazil to Equinox\u2019s<br \/>\nportfolio, consisting of two mines in California, US, and one in Brazil.<\/p>\n<p>As part of the C$769.3 million-transaction<br \/>\n(about $578m), Leagold shareholders will receive 0.331 of an Equinox share for<br \/>\neach share they own and will hold 45% of the combined entity, which will keep<br \/>\nthe Equinox name.<\/p>\n<p>The new gold miner will be led by<br \/>\nmining veteran Ross Beaty, current chairman of Equinox and Pan American Silver<br \/>\n(TSX: PAAS), who believes the merged company will have better liquidity and risk<br \/>\ndiversification.&nbsp;<\/p>\n<p>\u201cThis merger will create one of the<br \/>\nworld\u2019s largest gold companies operating entirely in the Americas,\u201d Beaty <a href=\"https:\/\/www.mining.com\/canadas-equinox-gold-buys-smaller-rival-leagold-in-578-million-deal\/\">said<br \/>\nin December<\/a>. \u201cOur large scale will provide improved liquidity, greater<br \/>\nasset and country diversification and a lower risk profile for all<br \/>\nshareholders. This is the kind of gold company investors want today.\u201d<\/p>\n<p>Thanks to the business combination,<br \/>\nEquinox will be able it to hit one million ounces of gold production by late<br \/>\n2021 \u2014 two years ahead of schedule.<\/p>\n<p>The Vancouver-based company moved<br \/>\nfrom developer to producer status in July, when it kicked off commercial<br \/>\nproduction&nbsp;<a href=\"https:\/\/www.mining.com\/equinoxs-gold-mine-brazil-days-away-commercial-production\/\"  rel=\"noreferrer noopener\">at its second gold mine, Aurizona<\/a>,&nbsp;in northeastern<br \/>\nBrazil.<\/p>\n<p>Equinox is also advancing<br \/>\nconstruction at the previously-mined Castle Mountain, located about 320km north<br \/>\nof its Mesquite operation, with the target of pouring first gold in the second<br \/>\nhalf of 2020.<\/p>\n<p>The announcement comes a day after Kirkland<br \/>\nLake Gold\u2019s C$4.4 billion ($3.35 billion) takeover bid for rival Detour Gold<br \/>\nCorp <a href=\"https:\/\/www.mining.com\/web\/kirkland-wins-shareholder-backing-for-c4-4bn-detour-takeover\/\">won<br \/>\nshareholders\u2019 support<\/a> at both companies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new company, which will keep the Equinox name, will be one of the world&rsquo;s top gold producers operating entirely in the Americas.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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