Equinox Gold (NYSEAMERICAN:EQX) shareholders approved a share issuance resolution tied to the company’s proposed acquisition of Orla Mining Ltd. at a special meeting, with Chair of the Board Ross Beaty saying the vote was “resoundingly in favor.”
Beaty said final voting results would be included in the meeting minutes and announced in a press release later in the day in accordance with Canadian securities laws and Toronto Stock Exchange policies. During the meeting, he noted that the vote was approximately 99.7% in favor, while the formal tabulation was still to be published.
Beaty Highlights Rationale for Orla Combination
Beaty said the proposed merger, announced May 13, is intended to combine two North America-focused gold producers with a complementary portfolio of operating mines across four countries.
He said the combined company would be anchored by three “high-quality, long-life, low-cost Canadian gold mines,” including Equinox Gold’s Greenstone and Valentine mines, which are expected to produce 450,000 ounces of gold annually, and Orla’s Musselwhite Mine in Ontario, which is expected to contribute 235,000 ounces annually.
“At nearly 700,000 oz of expected annual gold production from Canada, the combined company will be the second largest producer of Canadian gold,” Beaty said.
Beaty also said the combined company would have a path to increase annual production by more than 800,000 ounces from advanced exploration and development projects. He cited expected additional production of 350,000 ounces from Castle Mountain and South Railroad in the U.S., and nearly 500,000 ounces in Mexico from Los Filos and an expansion at Camino Rojo.
At current gold prices, Beaty said Equinox Gold expects the organic growth to be funded from operating cash flow and available liquidity. He added that all growth projects have established mineral reserves.
According to Beaty, the combined company would have 22.7 million ounces of proven and probable mineral reserves, 25.1 million ounces of measured and indicated mineral resources exclusive of mineral reserves, and 13 million ounces of inferred mineral resources.
Leadership Changes Announced With Transaction
Beaty said the meeting marked his final time serving as chair at a shareholder meeting. Upon completion of the combination, he said he will step down as chair and board member, with Charles “Chuck” Jeannes set to become chair of the board.
Beaty said he will remain involved with Equinox Gold as chair emeritus and special advisor to the board, adding that he is “not selling a single share” and expects to attend board meetings and provide input.
He also said Jason Simpson, Orla’s president and chief executive officer, will join the combined company as president.
Los Filos Restart Update
During the question-and-answer portion, Darren Hall, Equinox Gold’s chief executive officer, addressed a shareholder question about Los Filos.
Hall said Equinox Gold recently finalized long-term, 20-year land access agreements with three communities and put social and supply chain agreements or policies in place with those communities.
“We’re very pleased at the progress that we’ve made at Los Filos over the last, well, a number of years, but in particular the last 12 months,” Hall said.
Hall said those steps position the company to restart operations at Los Filos. He said Equinox Gold is working through an “organized and thoughtful restart” of activities, expected to begin in the latter part of the third quarter and continue into the fourth quarter of this year.
Hall said there may be some production later in the year, but described it as “relatively de minimis in the bigger scheme of things.” He said the company expects to provide updates on progress through the rest of the year and a more complete update heading into 2027.
Transaction Timing
After the formal meeting, Beaty said he expected Orla’s shareholder meeting to produce a similarly favorable vote. He also said the transaction had received Mexican approval, crediting work by Hall in Mexico and Washington.
Beaty said the company was targeting closing by the end of July or early August. After conferring during the meeting, participants noted a court hearing was scheduled for July 28, and Beaty said it was conceivable the transaction could close by the end of July.
About Equinox Gold (NYSEAMERICAN:EQX)
Equinox Gold Corp is a Canadian gold mining company headquartered in Vancouver, British Columbia. The company focuses on the acquisition, development, and operation of gold properties, with an emphasis on open-pit heap leach mining. Since its inception, Equinox Gold has pursued a strategy of combining assets in established jurisdictions to build a diversified portfolio that balances production and growth, while maintaining rigorous safety and environmental standards.
Equinox Gold’s operating portfolio spans three countries.
