Independent proxy advisers, including Institutional Shareholder Services, have urged Equinox Gold and Orla Mining shareholders to approve their merger, a deal that would create an $18.5-billion company and Canada's second-largest gold producer. Investors vote by July 20 ahead of a July 22 special meeting.
Institutional Shareholder Services and other independent proxy advisers have told Equinox Gold and Orla Mining shareholders to back the two companies' merger, clearing a key hurdle before a shareholder vote later this month. ISS said the acquisition appears to make strategic sense, arguing it would diversify Equinox's asset base, widen its strategic options and lift long-term production potential.
What the deal creates
Under the terms, Orla holders receive one Equinox share for each Orla share, leaving existing Equinox shareholders with 67% of the combined company. Together the two miners would form an $18.5-billion business ranked as the second-largest producer of gold in Canada, with mines in the US, Nicaragua and Mexico.
The scale argument rests on production. Equinox currently mines more than 1.1-million ounces of gold a year across six mines, and the merged company would target a growth profile of more than 1.9-million ounces annually. Management expects the combined free cash flow to reach $1.4-billion in 2026.
The vote ahead
Both boards have unanimously recommended that shareholders approve the arrangement, and the ISS endorsement strengthens that case as the vote nears. Investors have until July 20 to submit their proxies, ahead of a special shareholder meeting on July 22. A yes vote would combine the two producers into a single company targeting the higher output figure.
Source: Mining Weekly
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