Equinox Gold says Ontario mine is 96% complete
Equinox Gold Corp. [TSXV-EQX, NYSE-EQX] has released an update on construction and commissioning progress at its Greenstone Project near Geraldton, Ontario, approximately 275 kilometres northeast of Thunder Bay. The project is held 60% by Equinox and 40% by Orion Mine Finance.
The company notes that the project is 96% complete with pre-commissioning activities ongoing, including the crushing and grinding circuits, and wet commissioning in select areas.
A feasibility study has outlined the design of an open-pit mine that will produce over 5.0 million ounces of gold over an initial 14-year mine life
Gold production during the first five years is expected to average more than 400,000 ounces annually, with a life-of-mine production average of more than 360,000 ounces. The company previously said the project is on track for the first gold pour in the first half of 2024.
Meanwhile, Equinox said the project remains on track for a total spend of $1.2 billion. As of September, 2023, $1.08 billion (89%) of the budget had been spent (100% basis). An update on Greenstone 2024 operating costs and production estimates will be reported in connection with the company’s annual production and cost guidance in the first quarter of 2024.
The updated comes after Equinox recently announced details of a bought deal offering of convertible senior notes. The company said a group of purchasers have pledged to buy, on a bought deal basis, US$150 million worth of 4.75% unsecured convertible senior notes due 2028. Under a deal with BMO Capital Markets, the purchasers have the option to buy up to an additional US$22.5 million worth of notes for 30 days.
Equinox Gold is a Canadian mining company with seven operating gold mines, a multi-million-ounce gold reserve base and a clear path to achieve one million ounces of annual gold production from a pipeline of development and expansion projects.
Equinox operates entirely in the Americas, with two properties in the United States, one in Mexico and five in Brazil. The company has said it expects to produce 590,000 ounces of gold in 2023 and is advancing the development of four development and expansion projects that will add nearly 600,000 ounces of annual gold production.
The loan proceeds are earmarked for repayment of debt and general corporate purposes.
Meanwhile, Equinox delivered record production and revenue during the first half of 2023, producing 260,408 ounces of gold and generating revenue of US$506 million.
Highlights form the three months ended June 30, 2023, including gold production of 137,661 ounces and an adjusted net loss of US$6.3 million or $0.02 per share.
Equinox currently has four mines in Brazil, including Aurizona, Fazenda, Santa Luz and RDM. It also has the Castle Mountain and Mesquite gold mines in California as well as the Los Filos mine in Mexico.
On Monday, Equinox shares were trading at $6.40 in a 52-week range of $7.89 and $4.28.