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Equinox Gold To Acquire Premier Gold Mines In Friendly Deal - Quick Facts

Canadian gold miners Equinox Gold Corp. (EQX, EQX.TO) and Premier Gold Mines Ltd. (PIRGF,PG.TO) announced Wednesday a definitive agreement, whereby Equinox Gold will acquire all of the outstanding shares of Premier.

Concurrently, Premier will spin-out to its shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp.

Under the transaction, Premier shareholders will receive 0.1967 of an Equinox Gold share for each Premier share held by them and 0.4 of a share of i-80 Gold for each Premier share held by them.

The Directors of Equinox Gold and the Directors of Premier have unanimously approved the transaction. The transaction is expected to close in the first quarter of 2021, subject to certain customary and regulatory approvals. It is also subject to court approval and approval of Premier shareholders and optionholders.

Equinox Gold will retain Premier's interest in the world-class Hardrock Project in Ontario, the Mercedes Mine in Mexico, and the Hasaga and Rahill-Bonanza properties in Red Lake, Ontario.

On closing of the transaction, existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, and Equinox Gold and existing shareholders of Premier will own 30% and 70% of i-80 Gold, respectively, on an issued share basis.

This transaction creates value for both Equinox Gold and Premier Gold shareholders, and further solidifies Equinox Gold's position as the premier Americas-focused gold producer. Premier CEO Ewan Downie will be added to the Board of Directors of Equinox Gold upon closing of the Transaction.

In connection with the transaction, Equinox Gold plans to complete a C$75 million equity financing, fully underwritten by its Chairman Ross Beaty.

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