Gold Mining Deal Receives Final Approval from Shareholders

SEATTLE (Scrap Monster):  Equinox Gold Corp. and Leagold Mining Corporation has announced that shareholders of both the companies have approved the merger between them. The special meeting of shareholders of both the companies gave final approval to the transaction, initially announced in December 2019. The merger has led to creation of one of the world’s topmost gold producing companies.

The transaction is valued at around $584 million. It will add Leagold’s four mines in Mexico and Brazil to Equinox’s two mines in the U.S. and Brazil. Further to this, Leagold shareholders will receive 0.331 of an Equinox share for each share they own. Also, Leagold will own 45% stake in the combined entity.

The newly formed entity will have a total market capitalization of nearly $1.75 billion and will be headed by mining veteran Ross Beaty, who currently serves as the chairman of Equinox and Pan American Silver.

According to Beaty, the merger has created one of the world’s largest gold companies operating entirely in the Americas. The merged entity promises to offer improved liquidity and risk diversification, he added.

The transaction is expected to close in February this year, subject to necessary regulatory approvals.