Equinox Gold buys out Orion for almost US$1B as it readies Greenstone for first gold Colin McClelland (Northern Miner – April 24, 2024)


Equinox Gold (TSX: EQX; NYSE-AM: EQX) is buying partner Orion Mine Finance’s 40% stake in their new Greenstone gold mine in Ontario for US$995 million in cash and shares as it prepares to pour first gold.

The purchase includes US$745 million in cash and 42 million shares valued at US$250 million. It was announced late on Tuesday after Australia’s Gold Road Resources (ASX: GOR) said it was no longer considering buying a stake in Greenstone from Orion. Equinox said it would fund the purchase through a new US$500-million loan and a US$260-million bought-deal equity financing.

“When we acquired our 60% interest in Greenstone in 2021, our goal was to ultimately own the whole mine,” Equinox chairman Ross Beaty said in a release. “Consolidating 100% of Greenstone into Equinox Gold delivers our shareholders full exposure to a mine of outstanding scale and quality.”

Shares in Equinox fell 11% on Wednesday to $7.23 apiece, valuing the company at $2.4 billion. They’ve traded in a 52-week range of $5.36 to $8.79.

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