The shareholders of the Canadian gold mining company Equinox Gold have approved the acquisition of Orla Mining Ltd. for $5.1 billion. This is reported in a press release from Equinox.
The shareholders' decision allows us to close the deal to create one of the largest gold producers in North America with a market capitalization of $18.5 billion and an annual output of 700 thousand ounces. The transaction is expected to be completed on July 31.
Upon completion of the transaction, Equinox shareholders will own 67% of the combined company's shares, while Orla shareholders will own 33%.
Sharp fluctuations in prices on the metal markets (above 4.5 thousand per ounce) caused investors to worry about transactions with an inflated value and led to an increase in the number of transactions with zero and low premiums. BMO Capital Markets acts as an advisor to Equinox, and Trinity Advisors Corp. and Scotiabank, Orla's advisors.
The deal includes two operating mines in Mexico and Canada, as well as mining projects in Nevada and Panama. The combined company's production volume will grow to 1.9 million ounces per year.
Equinox Gold Corp. — a Canadian gold mining company that develops deposits in North and South America. The headquarters is located in Vancouver, Canada.
Orla Mining Ltd. is a Canadian company engaged in the development of mineral deposits (gold, silver, lead, zinc and copper). The headquarters is located in Vancouver, Canada.
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