Beaty bets US$20M on three-way merger to form Equinox Gold

VANCOUVER — Mining magnate Ross Beaty is leading a merger between gold juniors Trek Mining(TSXV: TREK), NewCastle Gold (TSX: NCA) and Anfield Gold (TSXV: ANF; US-OTC: ANCKF). Beaty will serve as chairman of the resulting company to be named Equinox Gold, which will mark the first time he has joined a board of directors of a mining company for nearly a decade. The new company’s name harkens back to Beaty’s first mining deal in 1985. The transaction involves Trek acquiring the other companies at an exchange ratio of 0.873 for each NewCastle share, and 0.407 for each Anfield share. Beaty will acquire an 11% equity stake in Equinox for a US$20 million investment. Trek and NewCastle shareholders will each own 44% in the combined company, which will have 423 million shares outstanding, with the transaction expected to close in November. “This opportunity really appealed to me for a number of reasons,” Beaty said … Continue reading at The Northern Miner.