Bullion miner Equinox Gold has entered into an agreement with an affiliate of the Orion Mine Finance Group to acquire an extra 10% of the Hardrock project, in Ontario, for $51-million, the company announced on Monday.
The fully permitted and construction-ready gold project is currently owned 50% by Orion and 50% by Premier Gold Mines. Equinox Gold will acquire a 50% interest in the Hardrock project upon completion of the company’s pending acquisition of Premier and will subsequently increase its interest to 60%.
Hardrock will be a low-cost, long-life gold mine, bringing more than 240 000 attributable ounces a year of gold production to Equinox Gold when in production.
Equinox Gold’s acquisition of Premier was approved by Premier shareholders on February 23, and on Monday the arrangement also obtained the final order of the Ontario Superior Court of Justice.
The parties are awaiting approval from the Federal Economic Competition Commission in Mexico (COFECE) in order to consummate the arrangement. The companies are aiming to close the arrangement shortly after the receipt of such COFECE approval.