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EQX - Equinox Gold News Story

$8.65 -0.1  -0.9%

Last Trade - 11/05/21

Sector
Basic Materials
Size
Mid Cap
Market Cap £1.85bn
Enterprise Value £2.04bn
Revenue £667.3m
Position in Universe 1990th / 6853

UPDATE 1-Equinox Gold to buy Premier Gold Mines in $479.9 mln deal

Wed 16th December, 2020 12:38pm
(Updates with details on the deal)
    Dec 16 (Reuters) - Canadian miner Equinox Gold Corp  EQX.TO 
said on Wednesday it would buy Premier Gold Mines Ltd  PG.TO  in
an all-stock deal valued at C$611.7 million ($479.9 million) and
simultaneously spin-out Premier's U.S. production assets.
    The deal is worth about C$2.57 per share, which represents a
2% premium to Premier's Tuesday close, as per Reuters
calculation. However, the exact value that Premier shareholders
will get depends on the pricing of the spin-out company's
shares.
    Deal making has picked up in the industry as gold prices
have hit a record high of above $2,000 an ounce this year as a
slowdown in economic activity and surging coronavirus cases
boosted demand for the precious metal.    
    On Tuesday, private equity firm Orion Mine Finance Group had
entered into an agreement to buy gold miner Centerra Gold Inc's
 CG.TO  50% interest in the Greenstone Gold Mines partnership
for $225 million in cash. Premier Gold has a 50% stake in the
partnership.  urn:newsml:reuters.com:*:nGNX8zKqtg
    Premier shareholders will receive 0.1967 of an Equinox share
for each share held and 0.4 of a share in the spin-out company
i-80 Gold Corp, the companies said on Wednesday.  urn:newsml:reuters.com:*:nCNW4mjBpa
    Upon deal closing, Equinox Gold will own about 84% of
Equinox Gold and Premier shareholders about 16%. Equinox Gold
and the existing shareholders of Premier will own 30% and 70% of
i-80 Gold, respectively, on an issued share basis.
    The transaction is expected to close in the first quarter of
2021.
    
    
($1 = 1.2746 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren
Daniel)
 ((Arunima.Kumar@thomsonreuters.com;))
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