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Winnipeg Free Press By: The Canadian Press
Last Modified: 8:25 AM CST Wednesday, Dec. 16, 2020
The Equinox Gold Corp. logo is shown in a handout. THE CANADIAN PRESS/HO
VANCOUVER - Equinox Gold Corp. has signed a friendly agreement to acquire Premier Gold Mines Ltd. which will spin out its Nevada assets in a new U.S.-focused gold miner to be called i-80 Gold Corp.
Under the deal, Equinox Gold will acquire Premier s interest in the Hardrock Project in Ontario, the Mercedes Mine in Mexico and the Hasaga and Rahill-Bonanza properties in Red Lake, Ont.
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Premier s South-Arturo and McCoy-Cove properties will be held by i-80 Gold, which will also complete Premier s previously announced acquisition of the Getchell Project, all in Nevada.
By Reuters Staff
2 Min Read
(Reuters) -Canadian miner Equinox Gold Corp said on Wednesday it would buy Premier Gold Mines Ltd 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, worth about C$2.57 per share, represents a 2% premium to Premier’s Tuesday close according to Reuters.
It fits Equinox’s strategy “to grow as big as we can as quickly as we can,” chairman Ross Beaty said on a call.
Cost-conscious miners have bulked up as gold prices climbed to record highs of above $2,000 an ounce this year.
On Tuesday, private equity firm Orion Mine Finance Group said it would buy gold miner Centerra Gold Inc’s 50% interest in the Greenstone Gold Mines partnership for $225 million in cash. Premier Gold has a 50% stake in the partnership, whose principal asset is the Hardrock mine in the Canadian province of Ontario.