Equinox acquired 40% in Greenstone for nearly US$1b (A$1.55b) -...

Equinox acquired 40% in Greenstone for nearly US$1b (A$1.55b) - looks expensive for a 40% interest on an operation yet to be proven.

All dollar amounts shown in United States dollars, unless otherwise indicated.

Equinox Gold (TSX: EQX, NYSE American: EQX) is pleased to announce that it has entered into a binding share purchase agreement (the “SPA”) with certain funds managed by Orion Mine Finance Management LP (“Orion”) to acquire Orion’s 40% interest in Greenstone Gold Mine GP Inc., giving Equinox Gold 100% ownership of the Greenstone Mine (“Greenstone”) in Ontario, Canada (the “Transaction”).

Under the terms of the SPA, Equinox Gold will pay $995 million to acquire Orion’s 40% interest in Greenstone, payable as follows:

• 42.0 million common shares of Equinox Gold valued at $250 million;
• $705 million in cash payable on closing; and
• $40 million in cash payable by December 31, 2024.

Equinox Gold will fund the cash consideration with net proceeds from both a new $500 million three-year term loan and a bought deal equity financing of common shares of Equinox Gold for approximately $260 million.