Canadian miners Equinox Gold and Leagold, which last month announced their planned at-market merger, have achieved their respective production targets in 2019 and are gearing up for a “transformational year” that will transform Equinox into “one of the world’s top gold producers”.

Equinox produced 201 000 oz from the Mesquite mine in the US and Aurizona in Brazil, while Leagold produced 375 445 oz from its four wholly owned gold mines, namely the Los Filos mine complex in Mexico, and the Fazenda, RDM and Pilar mines in Brazil.

The companies previously said that the new Equinox would produce 700 000 oz in 2020, increasing to one-million ounces a year in 2021 and beyond, from six operating mines in the US, Mexico and Brazil.

Equinox and Leagold are hosting their respective special meetings of securityholders on January 28, to seek approval for a number of matters in connection with the proposed merger. The transaction is expected to close in late February, subject to all necessary securityholder and regulatory approvals.

Equinox ended the year with a cash balance of $68-million and Leagold with an estimated cash balance of $78-million.

Leagold CEO Neil Woodyer, who will take the reins as CEO of the new Equinox, reported that the Los Filos mine delivered a strong fourth quarter, and achieved its full-year production guidance of more than 200 000 oz. He also indicated that Fazenda outperformed the top end of its guidance range of 63 000 oz to 70 000 oz, and that this continued to be a consistent, steady operation.

Pilar and RDM fell short of guidance, but RDM showed improvement in the fourth quarter following the resumption of normal operations in the third quarter.

During the year, Leagold completed the Los Filos expansion feasibility study, which is expected to double its production during 2021. Work on the expansion started in the third quarter, with the access road to Guadalupe completed and initial stripping under way.

Equinox produced about 125 700 oz of gold in 2019 from its Mesquite mine in California. From its Aurizona mine, which started commercial production on July 1, 2019, the company produced 75 300 oz of gold including ounces poured during commissioning and ramp-up.