Equinox Gold, a Vancouver-based company, has made a bold move in the mining industry by offering Orion Mine Finance Management a whopping $995 million to acquire its 40 per cent stake in the Greenstone Gold Mine GP, located south of Geraldton. This deal would allow Equinox to take full ownership of the open-pit mine, which is currently in the operational ramp-up stage and expected to start gold production later this year.
The acquisition, part cash and part Equinox shares, is seen as a strategic move by Equinox to consolidate its ownership of the mine and maximize its potential for long-term value creation. The company’s chairman, Ross Beaty, expressed excitement about the scale and quality of the mine, as well as the opportunities for further expansion and increased production.
Equinox president and CEO Greg Smith praised the Greenstone Mine as a rare and valuable asset in the mining industry, highlighting its potential to boost the company’s production, cash flow, and gold reserves. Orion’s managing partner, Istvan Zollei, also spoke highly of the relationship between the two companies and expressed confidence in the mine’s future success.
The transaction is expected to close by the end of the month, with Equinox funding the cash portion through a syndicate of banks and equity financing. The deal does not require shareholder approval, indicating a smooth and efficient process towards full ownership of the Greenstone Mine. This billion-dollar offer signals Equinox’s commitment to growth and success in the mining sector, setting the stage for a new chapter in the company’s story.
