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Equinox-Leagold merger gets proxy firm backings

Aerial view of the plant at Aurizona Gold Mine in Brazil (foreground) and Piaba Pit (background). (Image courtesy of Equinox Gold)

Independent proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis & Co. have both recommended that shareholders vote in favour of the proposed merger between Canadian-based gold miners Equinox Gold (TSX: EQX) and Leagold Mining (TSX: LMC).

Shareholders of both companies will meet separately on January 28 to consider the merger. The transaction is expected to close in late February, subject to all shareholder and regulatory approvals.

In December, Equinox entered into a definitive agreement to acquire its smaller rival Leagold and consolidate their portfolios in a deal that would be valued at C$769.3 million. The new company will continue as Equinox Gold and be headquartered in Vancouver.

Following the merger, Equinox’s combined project portfolio is expected to produce 700,000 ounces of gold this year, increasing to one million ounces a year in 2021 and beyond.