Equinox unveils US$150 million note offering

Share this article

Equinox Gold Corp. [EQX-TSXV, EQX-NYSE] has announced 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.

The notes bear cash interest semi-annually at a rate of 4.75% annually. The initial conversion rate of the notes will be 158.73 of Equinox per $1,000 principal amount of the notes, equivalent to an initial conversion price of $6.30 per share, an amount that represents a premium of 20% relative to the closing price of the shares on September 18, 2023, when Equinox shares were priced at $7.11.

The shares trade in a 52-week range of $7.89 and $3.23.

Equinox Gold’s portfolio includes the 60% owned Greenstone gold project near Geraldton, Ontario, approximately 275 kilometres northeast of Thunder Bay. 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 has said construction is progressing well and remains on budget and on track for the first gold pour in the first half of 2024.

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.


Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't miss the

NEWSLETTER

Exclusive editorial

Breaking News

Quality Company Coverage

Expert Writers

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Resource World Magazine will use the information you provide on this form to be in touch with you and to provide updates and marketing.