Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX) and Orla Mining Ltd. (NYSE:ORLA) have agreed to an all-stock merger to create an $18.5 billion North American gold titan.
Under the terms of the definitive arrangement, Equinox shareholders will retain a 67 percent stake in the combined entity, which will bear the Equinox Gold name, while Orla investors will hold the remaining 33 percent. Orla shareholders will receive one Equinox share and a nominal cash payment for each share.
The deal establishes the new company in Canada.
Combining Equinox’s Greenstone and Valentine mines (located in Ontario and Newfoundland, respectively) with Orla’s Musselwhite property located in Ontario, the merged entity is set to become Canada’s second-largest gold producer with estimated domestic production of 685,000 ounces this year.
Considering operations in the US, Mexico and Nicaragua, management sees a clear growth path to expand annual production beyond 1.9 million ounces.
“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 with increased scale, high-quality long-term assets and one of the strongest organic growth pipelines in the region,” said Darren Hall, CEO of Equinox. The company said in a press release.
Hall will retain his position as CEO, while Orla’s current head, Jason Simpson, will step into the role of president.
Simpson said, “Orla was built on a simple idea: acquire the right assets, develop them with discipline and operate them well.”
The merger’s heavy emphasis on tier-1 North American mining jurisdictions continues the industry’s trend of retreating from an unstable regulatory environment.
In January, Equinox closed the US$1 billion sale of its Brazilian gold assets to Chinese metals miner CMOC Group (OTCPL:CMCLF). However, a Brazilian court abruptly halted the transfer of mineral rights in March after state-run CBPM alleged the transaction violated its regional lease agreements.
By focusing decisively towards North America, the combined entity is projected to generate free cash flow of approximately US$1.4 billion in 2026, equipped with available liquidity to self-fund its development pipeline.
The transaction is expected to close in the third quarter of 2026, pending shareholder and regulatory approvals. The agreement also includes a US$475 million break fee payable by Equinox and a US$250 million fee payable by Orla under certain conditions.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
