Equinox Gold Snaps Up Greenstone Gold Mines For $995M In 'Incredibly Rare' Deal
Portfolio Pulse from Stjepan Kalinic
Equinox Gold (AMEX:EQX) acquires the remaining 40% stake in Greenstone Gold Mines for $995 million from Orion Mine Finance, gaining full ownership. The deal, expected to close in Q2 2024, will boost Equinox's annual gold production by 160,000 ounces and enhance shareholder value through increased EBITDA and cash flow. Financing includes $745 million in cash and 42 million shares, with a $500 million loan and $260 million in equity financing.
April 24, 2024 | 2:15 pm
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Equinox Gold's acquisition of Greenstone Gold Mines is expected to significantly increase its gold production and improve financial metrics like EBITDA and cash flow, enhancing shareholder value.
The acquisition of the remaining 40% stake in Greenstone Gold Mines positions Equinox Gold for a substantial increase in annual gold production and financial performance. The deal's financing strategy, involving a mix of shares and cash supported by significant loans and equity financing, indicates a well-planned approach to managing the acquisition's financial impact. Given the mine's potential for low production costs and the positive outlook on gold prices, this move is likely to be viewed favorably by investors, potentially leading to a positive short-term impact on EQX's stock price.
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