A leading Canadian mining company, with a multi-million-ounce gold reserve base, has completed the acquisition of a Californian gold mine for around $160mn.
Equinox Gold announced in a statement this week that it has completed the previously announced sale of the Mesquite Mine from New Gold in a $158mn deal.
The company acquired all of the New Gold Mesquite’s outstanding shares and will receive immediate production and cash flow to its portfolio.
“The Mesquite acquisition immediately transforms Equinox Gold from a developer to a producer, bringing meaningful gold production from a well-established operation,” said Christian Milau, CEO of Equinox Gold. “We welcome the Mesquite team to Equinox Gold and look forward to leveraging their operations expertise as we expand our presence in California with development of the Castle Mountain gold mine.”
Located in Imperial County, California, the Mesquite Gold Mine has produced more than four million ounces of gold since it commenced operations in 1985. Over the last 30 years it has had an average gold production of 1.2 mn ounces.
In the first half of 2018, Mesquite produced 64,900 ounces of gold and Equinox Gold believes that potential exists to expand its 1.1 mn ounces of proven and probable gold reserves.