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Equinox Gold to Acquire Orla Mining to Create $18.5 Billion Gold Producer
The combined company is expected to produce about 1.1 million ounces of gold a year and become Canada’s second-largest gold producer.
On Wednesday, Equinox Gold Corp. announced an all-stock deal to acquire Orla Mining Ltd., creating a major North American gold producer worth about US$18.5 billion.
The merger creates Canada's second-largest gold producer with operations across four countries—Canada, the United States, Mexico, and Nicaragua—expected to produce about 1.1 million ounces of gold this year.
Valued at about $7.02 billion, the deal splits ownership with Equinox shareholders holding about 67 per cent and former Orla shareholders owning about 33 per cent of the combined company.
CEO Darren Hall will lead the combined company as chief executive, while CEO Jason Simpson will transition to serve as president of the new entity.
Amid a record rally in gold prices bolstering miners' cash flows, Simpson said the combined entity would have "the production base, the balance sheet, and the team to compete" otherwise unattainable alone.
Companies claim that the merger has to do with speed, elevating the combined miner, Equinox Gold, to a level of production practically from night to day.