Vancouver-based Equinox Gold has announced the acquisition of Orion Mine Finance’s 40% interest in Greenstone Gold Mines for $955-million. This gives Equinox full ownership of what it describes as a “rare” gold opportunity.

The company acquired its 60% interest in Greenstone three years ago, and chairperson Ross Beaty says it has always been Equinox’s ultimate goal to own the whole mine.

"Consolidating 100% of Greenstone into Equinox Gold delivers our shareholders full exposure to a mine of outstanding scale and quality, in one of the best mining jurisdictions in the world, while meaningfully growing our expected production, cash flow and reserves,” he states.

CEO Greg Smith echoed Beaty’s sentiments, pointing out the rarity of opportunities such as Greenstone within the industry.

Greenstone stands out as one of Canada’s biggest and highest grade openpit gold mines and is only at the beginning of its expected 14-plus year mine life in an historically strong gold price environment.

The consolidation of Greenstone into Equinox’s portfolio is expected to boost the company’s yearly gold production by about 160 000 oz/y. Over the first five years, Greenstone will produce an expected average of 400 000 oz/y.

Smith has expressed the company’s commitment to advancing Greenstone towards commercial production. “As full owners, we remain focused on advancing Greenstone to commercial production and look forward to surfacing its full potential.”

Under the terms of a share purchase agreement, Equinox will pay $995-million for the stake, comprising 42-million shares valued at $250-million and $745-million in cash.

Equinox Gold will fund the cash consideration with net proceeds from both a new $500-million three-year term loan and a bought deal equity financing of common shares of Equinox Gold for approximately $260-million.

Australian mining company Gold Road Resources last week confirmed that it was interested in Orion's 40% interest in the project.