The deal, to be undertaken via a scheme of arrangement, will deliver Equigold shareholders 33 Lihir shares for every 25 Equigold shares owned. Based on Lihir's closing price on Wednesday, the takeover offer values Equigold at about $5.33, a 24 per cent premium to its closing price on Wednesday of $4.30. Directors of both companies have thrown their weight behind the deal, which will combine Lihir's operations in PNG and Ballarat with Equigold's Mt Rawdon operation in Queensland and the Bonikro project in Ivory Coast. Total reserves will stand at about 25 million ounces. "This new company will hold a portfolio of long life, high-quality assets in diverse geographic locations, effectively eliminating single mine asset risk and leading to improved valuations for the combined group," said Lihir chief executive Arthur Hood.