- Equinox Gold (TSX:EQX) has completed its merger with another Americas mining company Leagold (TSX:LMC)
- All Leagold shareholders will be entitled to exchange their shares for an equivalent 0.331 share in Equinox
- Once the merger finalises, Leagold shareholders will hold a 45 per cent interest in Equinox Gold, with a resulting market cap of C$1.75 billion
- Equinox Gold will continue listing on the TSX and NYSE. Leagold is likely to delist from the TSX around March 11, 2020
- Equinox Gold Corporation (EQX) was down 0.19 per cent, with shares trading for $10.49
Equinox Gold Corp (TSX:EQX) has completed its merger with another Americas mining company Leagold (TSX:LMC) through a share-exchange agreement.
The merger has progressed swiftly, since The Supreme Court of British Columbia approved the deal last week.
Once the merger closes, Equinox Gold will continue listing on the TSX and NYSE. Leagold is likely to delist from the TSX around March 11, 2020.
All Leagold shareholders will be entitled to exchange their shares for an equivalent 0.331 share in Equinox. As a result, Leagold shareholders will own a 45 per cent interest in Equinox.
Equinox will assume control of Leagold’s four operational gold mines in Mexico and Brazil, bringing its total number to six. The resulting company will have an estimated market cap of $1.75 billion.
Ross Beaty, Executive Chair of Equinox Gold, believes the merger is in the best interests of both companies.
“We have created a major gold producer by combining the assets and leadership teams of Equinox Gold and Leagold, with a peer-leading growth profile and powerful financial, technical, and operational management.
Equinox Gold now has six producing mines, two development projects, two expansion projects, and the financial capacity to fund its development plans,” he said.
At the time of the merger announcement, Leagold Mining had only been active for three years.
Neil Woodyer, CEO of Leagold, stated that this was an opportunity to combine companies with common business plans and growth strategies.
“The transaction has received exceptionally strong support from shareholders, from Mubadala, and from a syndicate of leading commercial lenders which collectively will enable us to fully fund the new company’s growth plans,” Woodyer said.
Once the merger finalises, Woodyer will step down as CEO of Leagold and become Vice Chair of Equinox.
Equinox Gold Corporation (EQX) was down 0.19 per cent, with shares trading for $10.49 at 4.50pm EST.
