Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Equinox Gold (TSX: EQX NYSE: EQX) and Leagold Mining Corporation announced Tuesday they have completed their business combination, merging to create one of the world’s top gold producing companies operating entirely in the Americas.
The deal, announced in December, adds Leagold’s four mines in Mexico and Brazil to Equinox’s portfolio, consisting of two mines in California, US, and one in Brazil, creating an America-focused gold miner with a market capitalization of about $1.75 billion.
As part of the C$769.3 million-transaction (about $584m), Leagold shareholders will receive 0.331 of an Equinox share for each share they own and will hold 45% of the combined entity, which will keep the Equinox name.
“We have created a major gold producer by combining the assets and leadership teams of Equinox Gold and Leagold, with a peer-leading growth profile and powerful financial, technical and operational management,” Ross Beaty, Executive Chair of Equinox said in a press release.
“Equinox Gold now has six producing mines, two development projects, two expansion projects and the financial capacity to fund its development plans,” Beaty said in a press release. “I look forward to working with the combined management team as we further build Equinox Gold into an important global gold producer.”
Equinox Gold common shares and warrants will continue trading on the TSE and NYSE with no changes. Leagold shares are expected to be de-listed on or about March 11, 2020.
