Canada’s Equinox Gold (TSX: EQX) and Leagold Mining (TSX: LMC) said on Wednesday that shareholders in both companies have approved their merger, creating an America-focused gold miner with a market capitalization of about $1.75 billion.
The deal, announced in December, adds Leagold’s four mines in Mexico and Brazil to Equinox’s portfolio, consisting of two mines in California, US, and one in Brazil.
As part of the C$769.3 million-transaction (about $584m), Leagold shareholders will receive 0.331 of an Equinox share for each share they own and will hold 45% of the combined entity, which will keep the Equinox name.
The new gold miner will be led by mining veteran Ross Beaty, current chairman of Equinox and Pan American Silver (TSX: PAAS), who believes the merged company will have better liquidity and risk diversification.
“This merger will create one of the world’s largest gold companies operating entirely in the Americas,” Beaty said in December. “Our large scale will provide improved liquidity, greater asset and country diversification and a lower risk profile for all shareholders.
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