Equinox Gold bids $7-billion for Orla Mining to create Canada’s second-largest gold producer
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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 with zero takeover premium.
Equinox is offering to buy Orla 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.
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.
“Today is an incredibly exciting day for both Equinox and Orla shareholders as we announce a business combination that creates a senior North American gold producer,” said Equinox chief executive officer Darren Hall in a press release.
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Early Wednesday, the share prices of both mining companies dropped slightly in Toronto Stock Exchange trading. Equinox shares fell by 3 per cent, while Orla shares fell by 0.5 per cent.
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, Orla shareholders may question the low premium and merits of the deal beyond scale, in particular after recent underperformance,” said the RBC analysts.
Equinox is bidding for Orla as gold prices soar and the mining industry consolidates around its largest companies. Institutional investors put a premium on large, easy-to-trade gold mining stocks.
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 to just one billion-dollar-plus transaction in 2024.
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If Orla and Equinox join forces, the two Vancouver-based companies will produce approximately 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.
Mr. Hall, Equinox’s current CEO, will remain CEO of the company, while Orla CEO Jason Simpson will join Equinox as the miner’s president if the deal is approved.
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 other bids for the company.
Equinox agreed to pay Orla a $475-million break fee if the deal fails to close, while Orla agreed to a $250-million reverse break fee if the takeover falls apart.
Equinox hired BMO Capital Markets as its financial advisor, along with law firms Blake, Cassels & Graydon LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP.
Orla’s financial advisor is Trinity Advisors Corp. Scotiabank advised the Orla board’s special committee. Lawyers at Cassels Brock & Blackwell LLP and Crowell & Moring LLP acted for Orla, and Fasken Martineau DuMoulin LLP advised the special committee.
