Pacific Road Resources Funds, an Australian mining private equity firm, said it will exercise non-dilution rights to acquire additional equity in Vancouver-based mining company Equinox Gold Corp (TSX-V: EQX), formerly known as Trek Mining Inc. The deal will provide Equinox with proceeds of about $19.2 million and increase Pacific Road’s interest in the business to about 10.1 percent of outstanding common shares. Pacific Road took the step as a result of the December formation of Equinox through the merger of Trek with NewCastle Gold Ltd and Anfield Gold Corp. The new entity’s current focus is bringing its Aurizona Gold Mine in Brazil to production.
Pacific Road Exercises Non-Dilution Rights to Acquire Additional Common Shares of Equinox Gold
VANCOUVER, British Columbia, Jan. 16, 2018 (GLOBE NEWSWIRE) — Equinox Gold Corp. (TSX-V:EQX) (OTC:LWLCF) (“Equinox Gold” or the “Company”) announces that Pacific Road Resources Funds (“Pacific Road”) has provided notice to the Company of the exercise of its pre-existing non-dilution rights and will acquire an additional 21,000,000 Equinox Gold common shares for aggregate proceeds to the Company of C$19,215,000, subject to TSX Venture Exchange approval. When combined with the 23,824,968 Equinox Gold common shares Pacific Road already owns, Pacific Road will hold an aggregate of 44,824,968 Equinox Gold common shares representing approximately 10.1% of the Company’s outstanding common shares.
Pacific Road’s non-dilution rights are being exercised in connection with the business combination (the “Business Combination”) completed on December 22, 2017 whereby Equinox Gold (formerly Trek Mining Inc.) acquired all issued and outstanding securities of NewCastle Gold Ltd. and Anfield Gold Corp. The purchase price was calculated based on the five-day volume weighted average price of Equinox Gold’s common shares on the day the Business Combination closed. As disclosed in the joint management information circular related to the Business Combination, Pacific Road has certain non-dilution rights pursuant to an investment agreement dated May 7, 2015 whereby as long as Pacific Road holds at least 5% of Equinox Gold’s common shares, Pacific Road has the right to maintain all or a portion of its ownership interest in the Company following any new issuance of Equinox Gold common shares.
Equinox Gold Contacts
Christian Milau, CEO
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
About Equinox Gold
Equinox Gold is a Canadian mining company with a multi-million-ounce gold resource base, near-term and growing gold production from two past-producing mines in Brazil and California, and a long-term growth platform with a diverse portfolio of gold and copper assets in North and South America. Construction is underway at the Company’s Aurizona project in Brazil with the objective of pouring gold by year-end 2018, and a prefeasibility study is underway at the Company’s Castle Mountain project in California with the objective of restarting production. Further information about Equinox Gold’s current portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at email@example.com.
Photo courtesy of Equinox Gold Corp