This morning Equinox Gold Corp (TSX: EQX) announced they have entered into a definitive agreement to acquire Premier Gold Mines (TSX: PG). Each Premier shareholder will receive 0.1967 shares of Equinox Gold for each share held of Premier. This represents an at-market acquisition based on the 10-day volume-weighted average closing prices of both companies.
With this acquisition, Equinox Gold now acquires a 50% interest in the permitted, development-ready, multi-million-ounce Hardrock Project through a joint venture between Equinox Gold and Orion Mine Finance. This project includes 5.54M ounces of Proven and Probable Mineral Reserves with an average grade of 1.27 g/t. Based on the companies Feasibility study, the project is expected to yield an average of 414k oz of gold annually.
Equinox Gold also announced that they will undertake a C$75 million equity financing fully underwritten by Chairman, Ross Beaty.
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All though possibly disappointed by the lack of premium in the acquisition price, Premier shareholders will receive one sweetener, the company will spin-out shares of the newly created US-focused gold production and development company to be called i-80 Gold Corp. This new venture owns the South-Arturo and McCoy-Cove properties and will complete Premier’s previously announced acquisition of the Getchell Project, all in Nevada.
Equinox Gold Corp shares last traded at $13.10 and Premier Gold Mines shares last traded at $2.52; both on the TSX.
Information for this briefing was found via Sedar and Equinox Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
