Equinox Gold has signed a definitive agreement with Orla Mining to merge and create a new North American gold producer with an implied market capitalisation of $18.5bn (C$25.36bn).
The combined company aims to achieve annual production of 1.1 million ounces (moz) of gold, with the potential to exceed 1.9moz from future projects.
The merger will be led by a court-approved plan of arrangement under the Canada Business Corporations Act. The new entity will continue to operate under the name Equinox Gold.
Equinox will acquire all common shares of Orla, with Orla shareholders receiving one Equinox share plus a nominal cash payment of $0.0001 per share.
Equinox chair Ross Beaty said: “Great companies are built on strong foundations and strong teams. The combination of Equinox and Orla strengthens our foundation of Canadian production, expands our portfolio of operating gold mines in North America, and combines two excellent operating teams to create a gold mining powerhouse.
“With improved scale, asset quality and financial strength, Equinox Gold will be well positioned to deliver long-term value to its shareholders. I am very excited about our future as an even better gold mining company.”
Post-merger, Equinox shareholders will own roughly 67% of the new company, while Orla shareholders will hold around 33%.
The merger will offer a complementary portfolio of six North American mines and more than 23moz of proven and probable reserves.
Equinox’s Greenstone and Valentine mines and Orla’s Musselwhite mine are expected to be the key contributors, producing nearly 700,000oz of gold from Canada by 2026.
The combined company’s growth strategy includes projects in the US and Mexico that could increase production significantly, further backed by established mineral reserves.
It aims to generate substantial free cash flow and maintain robust financial health, with an expected $1.4bn in liquidity available.
The merger requires approval from 66.67% of Orla shareholders, anticipated at a special meeting in July 2026.
Similarly, Equinox shareholders must approve through a simple majority at their meeting, also expected in July 2026, to issue common shares as part of the merger.
“Equinox and Orla announce merger to create $18.5bn gold producer ” was originally created and published by Mining Technology, a GlobalData owned brand.
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