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.
US-focused gold miner i-80 Gold Corp (TSX: IAU), a company formed as part of the C$612 million ($478m) acquisition of Premier by Equinox Gold (TSX, NYSE: EQX), debuted on the Toronto exchanged on Tuesday, falling slightly in the first hour of trading.
The Canadian company’s stock opened at C$3.05 and closed almost 7.7% lower at C$2.4.
Gold prices, in contrast, were pushing higher following US inflation data published on Tuesday. June gold futures last traded at $1,741.30 an ounce, up 0.50% on the day.
The gold miner, led by Premier’s founder and former boss Ewan Downie, announced on Tuesday the appointment of Andy Cole, which spent 20 years at Barrick’s Goldstrike mine in Nevada.
Members of i-80 have had previous experience working with Cole as a Barrick representative on the South Arturo mine joint venture, the company noted.
Premier investors now own 16% of Equinox Gold as well as 70% of the shares of i-80 Gold
The Equinox acquisition gave Premier shareholders 0.1967 of one Equinox Gold share and 0.4 of a share of i-80 Gold for each Premier share held.
Premier investors now own 16% of Equinox Gold as well as 70% of the shares of i-80 Gold.
Canada’s Equinox, which owns the remaining 30% of i-80 Gold, moved from developer to producer status in 2019, when it kicked off commercial production at its second gold mine, Aurizona, in northeastern Brazil.
In addition to its producing mine, El Niño underground mine in Nevada, i-80 is planning for future production growth through the potential addition of Phases 1 and 3 projects at the South Arturo property, located along the northern section of the prolific Carlin Trend.
The new miner is also advancing an underground development program for the 100%-owned McCoy-Cove property, south of Battle Mountain, and completing the acquisition of the Getchell Project.
i-80 said it would “aggressively pursue” the development of the Pinson underground and open pit opportunities.
