VANCOUVER — Equinox Gold Corp. has signed a friendly agreement to acquire Premier Gold Mines Ltd. which will spin out its Nevada assets in a new U.S.-focused gold miner to be called i-80 Gold Corp.
Under the deal, Equinox Gold will acquire Premier's interest in the Hardrock Project in Ontario, the Mercedes Mine in Mexico and the Hasaga and Rahill-Bonanza properties in Red Lake, Ont.
Premier's South-Arturo and McCoy-Cove properties will be held by i-80 Gold, which will also complete Premier's previously announced acquisition of the Getchell Project, all in Nevada.
The proposal will see Premier shareholders receive 0.1967 of an Equinox Gold share and 0.4 of a share of i-80 Gold for each Premier share held. Equinox shares closed at $13.10 on the Toronto Stock Exchange on Tuesday, while Premier shares closed at $2.52.
Premier shareholders will own 16 per cent of Equinox Gold once the deal is complete as well as 70 per cent of the shares of i-80 Gold. Equinox Gold will own the remaining 30 per cent of i-80 Gold.
The transaction is subject to court approval and approval by Premier shareholders at a meeting expected to be held in February.
This report by The Canadian Press was first published Dec. 16, 2020.
Companies in this story: (TSX:EQX, TSX:PG)
The Canadian Press
