Equinox Gold acquires full ownership of Greenstone for $995M

Equinox Gold entered into a binding share purchase agreement with Orion Mine Finance Management to acquire the remaining 40% interest in the Greenstone gold mine in Canada for $995 million.

The deal gives Equinox Gold full ownership of the mine.

Under the terms of the agreements, Orion will receive 42 million common shares of Equinox Gold, valued at $250 million, $705 million in cash payable on closing, and $40 million in cash by the end of 2024.

Equinox said that the acquisition is a "rare opportunity" that "consolidates 100% ownership of Greenstone, one of the largest and highest-grade open pit gold mines in Canada, a top mining jurisdiction, at the beginning of its expected 14+ year mine life and into a historically strong gold price environment".

Full ownership of the mine would increase Equinox's annual gold production by approximately 160,000ozpa. Greenstone is expected to produce an average of 400,000ozpa of gold over the first five years.

"When we acquired our 60% interest in Greenstone in 2021, our goal was to ultimately own the whole mine," Equinox chairman Ross Beaty said.

"Consolidating 100% of Greenstone into Equinox Gold delivers our shareholders full exposure to a mine of outstanding scale and quality, in one of the best mining jurisdictions in the world, while meaningfully growing our expected production, cash flow and reserves."

"Opportunities to own gold mines like Greenstone are incredibly rare in our industry, and the Greenstone Mine will now be the foundation for long-term value creation in our company," chief executive Greg Smith added.

"Greenstone is well into hot commissioning, with first gold in sight. Now, as full owners, we remain focused on advancing Greenstone to commercial production and look forward to surfacing its full potential."