Equinox Gold (NYSE: EQX) and Orla Mining (NYSE: ORLA) announced that the two companies have agreed to merge in an all-stock transaction that will create an approximately $18.5 billion North American gold producer with projected 2026 annual production of roughly 1.1 million ounces

‍

Under the agreement, Orla shareholders will receive one Equinox share plus a nominal cash payment for each Orla share held. Existing Equinox shareholders will own about 67% of the combined company, while Orla shareholders will hold the remaining 33%. 

‍

The merged company will continue operating under the Equinox Gold name following an expected closing in the third quarter of 2026.

‍

The transaction marks another major consolidation move in the gold mining sector, as producers continue to use elevated gold prices and improved cash flow to expand reserves and strengthen operations in politically stable jurisdictions. Gold prices remain near record highs, significantly improving balance sheets across the mining industry.

‍

Oh Canada!

‍

The strategic focus of the merger is Canada.

‍

Equinox’s Greenstone mine in Ontario and Valentine project in Newfoundland, combined with Orla’s Musselwhite mine in Ontario, are expected to produce roughly 685,000 ounces of gold next year. Management said the deal will create Canada’s second-largest gold producer.

‍

The combined company will operate six producing mines across Canada, the United States, Mexico, and Nicaragua. Proven and probable reserves are expected to total roughly 23 million ounces of gold.

‍

Management is also emphasizing future production growth.

‍

The companies said existing development projects, including Valentine Phase 2, Castle Mountain in California, South Railroad in Nevada, Camino Rojo underground in Mexico, and Los Filos expansion plans, could provide a pathway to annual gold production exceeding 1.9 million ounces over time.

‍

Reducing debt and expanding portfolios

‍

Equinox has spent the past year restructuring its portfolio and reducing debt ahead of the merger.

‍

The company previously sold its Brazilian operations for more than $1 billion while reducing debt by approximately $1.1 billion since mid-2025. Equinox also generated adjusted EBITDA of roughly $1.34 billion in 2025 as higher gold prices boosted cash flow.

‍

For Orla, the transaction comes shortly after the company expanded its own portfolio through the acquisition of the Musselwhite underground mine from Newmont. That asset now becomes a central part of the merged company’s Canadian production base.

‍

Equinox CEO Darren Hall will remain CEO of the combined company, while Orla CEO Jason Simpson will become president.

‍