Orion Mine Finance sells 10% interest in the Greenstone Project
On April 16, 2021, Equinox Gold Corp. ("Equinox Gold") announced the completion of its acquisition of an additional 10% interest in the multi-million-ounce, fully permitted, construction-ready Greenstone Project in Ontario, Canada from an affiliate of the Orion Mine Finance Group (“Orion”), bringing its total interest in the project to 60%.
On closing, Equinox Gold paid cash consideration of US$51 million to Orion. In addition, Equinox Gold assumed certain contingent obligations comprising:
- US$5 million in cash 24 months after a positive mine construction decision for the project; and
- delivery of approximately 2,200 ounces of refined gold, the cash equivalent value of such refined gold, or a combination thereof, after production milestones of 250,000 ounces, 500,000 ounces and 700,000 ounces from the project.
Equinox Gold acquired its initial interest in the project through its acquisition of Premier Gold Mines Limited (“Premier”) on April 7, 2021, which included a 50% interest in the Greenstone Project.
The project is being advanced in a joint venture with Orion. Orion acquired its interest in the Greenstone Project in January 2021 following its acquisition of a 50% interest in the Greenstone Gold Mines Partnership (the “Partnership”) from Centerra Gold Inc. The Greenstone Project is located on the Trans-Canada Highway near Geraldton in Ontario and encompasses the former Hardrock, MacLeod-Cockshutt and Mosher underground mines and represents one of the most significant large-scale, permitted, mine development opportunities in North America.
Further information can be found on Canada Newswire’s website.
Equinox Gold is a Canadian mining company operating entirely in the Americas, with seven operating gold mines and a clear path to achieving more than one million ounces of annual gold production from a pipeline of development and expansion projects.
Orion is a global industry leader in delivering customized financial solutions to base and precious metals mining companies.
Torys also acted on the following in connection with this project:
Orion Mine Finance in the US$995 million sale of its 40% joint venture interest in the Greenstone Gold Project in northern Ontario to Equinox Gold Corp.
Orion Mine Finance as joint venture partner in connection with the project financing and positive construction decision for the Greenstone Project in northern Ontario
Orion Mine Finance in its US$300 million acquisition of Centerra Gold Inc.’s 50% interest in the Greenstone Gold Mines Partnership, owner of the Greenstone Project in northern Ontario
| Jurisdiction | Municipality of Greenstone, in the Thunder Bay district |
| Province/State | Ontario |
| Country | Canada |
| Nature of Engagement | Environmental, Real Estate, M&A |
| Client | Orion Mine Finance |
| Client Role | Seller |
| Value | $51,000,000 USD |