17 Dec Equinox Gold announces $480 million purchase of Premier Gold Mines
Canada’s Equinox Gold Corp has confirmed it will buy fellow North American miner Premier Gold Mines in an all-stock deal valued at US$479.9 million.
Equinox chairman Ross Beaty said that the deal – a 2% premium on Premier’s most recent closing price – fits the company’s strategy to ‘grow as big as we can as quickly as we can’.
“This transaction is exactly the kind of accretive Americas-focused growth we promised shareholders when we started Equinox Gold at the beginning of 2018,” he said.
The deal provides Equinox with a 50% interest in Premier’s Hardrock project in Ontario, the producing Mercedes Mine in Mexico as well as the Hasaga and Rahill-Bonanza properties in Red Lake, Ontario.
“The addition of a top-tier, low-risk mining jurisdiction in Ontario, Canada creates a lower risk profile, with greater asset and country diversification,” Beaty added.
In addition, Equinox will spin-out Premier’s assets in the US state Nevada into a new US-focused gold producer called ‘i-80 Gold’.
Almost exactly 12 months ago, Equinox announced a merger deal with Leagold Mining, creating an Americas-focused gold giant with a market capitalisation that has recently grown to $2.5 billion.