Equinox Gold spins out copper assets
Equinox Gold will incorporate Solaris Copper to hold all of Equinox's former copper assets.
The chief assets being moved to the new company are the Warintza project in Ecuador and the La Verde project in Mexico.
Equinox chairman Ross Beaty says the spin out will unlock value.
"Solaris Copper will control a portfolio of very promising exploration-stage projects located in world-class copper districts," said Beaty in a news release.
"Creating a standalone copper-focused company should give these projects the visibility and attention they deserve. With large copper deposits already identified, exceptional exploration upside and optionality from multiple properties, Solaris Copper represents an exciting growth-focused copper story."
Sixty percent of Solaris Copper shares will be distributed to Equinox Gold shareholders with the remainder to be held by Equinox Gold.
Warintza is a porphyry copper-molybdenum project located in southeastern Ecuador in a corridor of mineralization that is known to host numerous exploration- and development-stage projects with copper, copper-gold, copper-molybdenum and high-grade gold mineralization. The current mineral resource estimate outlines 195.0 million tonnes of inferred resources grading 0.42% copper and 0.03% molybdenum, for 1.808 billion pounds of copper and 132.3 million pounds of molybdenum, and a copper-equivalent grade of 0.61%.
Solaris Copper will indirectly hold a 60% interest in the La Verde project, with the remaining 40% held by Teck Resources Limited. A preliminary economic assessment completed for the project in 2012 outlined the potential to produce more than 200 million pounds of copper per year in concentrates over a 20-year mine life.
Written with material from Equinox Gold press release.