(Reuters) - Canada's Equinox Gold Corp (TO:EQX) will buy rival Leagold Mining Corp (TO:LMC) for C$769.3 million ($578.38 million), the company said on Monday, the latest consolidation in the industry that has seen deals worth $30.5 billion so far this year.
Led by top producers Newmont Goldcorp Corp (N:NEM) and Barrick Gold Corp (TO:ABX), miners are bulking up to replace dwindling reserves and win back investors who in recent years shunned the sector because of disappointing returns.
The offer, which implies a no-premium consideration of C$2.70 per share, will help Equinox add Leagold's four mines in Mexico and Brazil to its own California-Brazil focused portfolio.
Leagold shareholders will get 0.331 of an Equinox share for each share they own and will hold 45% of the combined company, Equinox said.
The deal is expected to close in the first quarter of 2020.
In a related development, London's Centamin Plc (L:CEY) earlier on Monday agreed to assess the feasibility of a merger with Canada's Endeavour Mining Corp (TO:EDV), having earlier rejected a 1.47 billion pound ($1.89 billion) all-stock takeover proposal as inadequate.