Equinox Gold attracts $130m investment from Abu Dhabi
Equinox Gold (CVE: EQX) has attracted a $130m investment from Abu Dhabi’s state-owned Mubadala Investment Co. in the form of convertible notes.
The notes are for five years with a 5% interest rate convertible at $1.05 per share, a 25% premium to the 10-day volume weighted average Equinox share price. Mubadala will be granted a seat on Equinox’s board and standard anti-dilution rights.
Equinox plans to use the funds to move the Castle Mountain gold project forward in California, refinance a portion of existing debt, and for general and working capital expenses.
Equinox is moving the Castle Mountain heap leach gold mine in California towards phase one production in 2020. This historic mine will start its next life as a 200,000 oz. gold per year producer. Measured and indicated resources are 242.2 million tonnes at 0.63 g/t gold for 4.3 million contained ounces. The inferred resource is 171.4 million tonnes at 0.40 g/t gold for 2.2 million contained ounces.
At market close Tuesday, shares in Equinox were up 2%.
This article first appeared in the Canadian Mining Journal.