Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, May 10, 2024

Article Excerpt

EQUINOX GOLD CORP., $7.18, symbol EQX on Toronto, is a Vancouver-based gold producer with two mines in California, one in Mexico, and four in Brazil. The company’s eighth mine will be the Greenstone mine in northern Ontario. The mine began commissioning at year-end 2023 and is on track to pour gold in the first half of 2024. It’s expected to produce an average of 360,000 ounces annually for 14 years. On April 23, 2024, Equinox announced that it would pay $995 million (all amounts in U.S. dollars except share price) in cash and stock for the 40% of the Greenstone project it didn’t already own from Orion Mine Finance Management LP. The transaction sees Equinox issue 42.0 million shares of its stock valued at $250 million, $705 million in cash at the closing, and $40 million in cash by the end of 2024. The acquisition gives Equinox 100% ownership in one of the world’s lowest-cost open-pit gold mines with a life of over 14…