Equinox Gold's Greenstone mine in Ontario, in 2021. The company, which has made an offer for Orla Mining, also has a mine in Newfoundland.Greenstone Gold Mines
Equinox Gold Corp. EQX-T is bidding to join the ranks of North America’s largest gold producers with an all-stock, $7-billion offer for Orla Mining Ltd. OLA-T pitched without a takeover premium.
Equinox is offering to buy Orla, which has gold properties in Ontario, Nevada, Mexico and Panama, by swapping one of its own shares and a nominal amount of cash for each Orla share. Equinox owns mines in Ontario and Newfoundland and would become the country’s second-largest gold producer, behind Agnico Eagle Mines Ltd. AEM-T, if the deal is approved.
The two miners, both based in Vancouver, have discussed joining forces over the past five years and began serious negotiations in January after Equinox sold its Brazilian mines for US1-billion and paid down almost all its debt, said Darren Hall, Equinox’s chief executive officer.
The companies code-named the takeover “Project Kismet, because it meant our destiny or fate was to be be together,” said Mr. Hall in an interview on Wednesday.
Orla CEO Jason Simpson said his company agreed to be acquired without a takeover premium because joining forces with Equinox would dramatically increase gold production and boost the valuation to what investors award the world’s largest gold miners.
“Together, we have a clear pathway to value over the next decade, with enormous symmetry in our North American operations,” said Mr. Simpson, referring to the companies’ common mine locations and qualities. He said the Orla board considered a number of other potential transactions before starting talks with Equinox.
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Two of Orla’s largest shareholders, financier Pierre Lassonde and Fairfax Financial Holdings Ltd. FFH-T, and the company’s executives and directors pledged to vote their 20-per-cent holding in favour of the Equinox offer.
Equinox shares fell 38 cents to $19.90, while Orla shares closed up 16 cents at $19.93 in Wednesday trading on the Toronto Stock Exchange.
The proposed takeover received positive reviews from analysts Josh Wolfson and Harrison Reynolds at RBC Capital Markets. In a report, the analysts said: “We view Equinox-Orla offering investors exposure to a North American-focused asset base with high organic growth, and supported by an experienced management team.”
If investors approve the Orla takeover, existing Equinox shareholders would own 67 per cent of the combined company and Orla shareholders would hold 33 per cent.
“While 20 per cent of Orla shareholders have entered into support agreements, [other] Orla shareholders may question the low premium and merits of the deal beyond scale, in particular after recent underperformance,” said the RBC analysts.
If Orla and Equinox join forces, the company will produce 1.1 million ounces of gold each year from six North American mines. Equinox forecasts boosting production by 800,000 ounces per year after the takeover by expanding existing mines and developing new properties.
Equinox is bidding for Orla as gold prices soar and the mining industry consolidates around its largest companies. Institutional investors typically put a premium on large, easy-to-trade gold mining stocks.
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In 2025, the Canadian mining industry saw more M&A activity than any other sector, with 803 transactions valued at US$61.2-billion, according to a report from law firm Bennett Jones LLP.
“Gold had a standout year as Canadian deal value in the sector more than tripled,” said a team of Bennett Jones lawyers. Last year, there were eight gold transactions worth US$1-billion or more, compared with just one such transaction in 2024.
Investors have reacted poorly to miners that pay up for takeover, rather than structuring no-premium deals similar to Equinox’s bid for Orla. Activist funds have targeted gold miners that overpay for assets. Last year’s largest gold takeover saw Chicago-based Coeur Mining Inc. pay $9.5-billion in stock for New Gold Inc.
Last November, when Coeur announced the takeover, the bid represented a 16-per-cent premium to New Gold’s share price. However, most of the premium vanished when Coeur’s share price fell 12 per cent on the day it announced the offer. The New Gold takeover closed in March.
Mr. Hall, Equinox’s current CEO, will remain CEO of the company, while Mr. Simpson will join Equinox as president if the deal is approved. Orla chair Chuck Jeannes will become chair of Equinox, while current chair Ross Beaty, a prolific mine developer, will step down and serve as an advisor to the company.
While another bidder could step forward with an offer for Orla, Equinox has the right to match any rival offer. The Orla board also agreed not to solicit another bid for the company.