The Base Shelf Prospectus is accessible, and the Prospectus Supplement will be accessible within two business days, through SEDAR+
VANCOUVER, British Columbia, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Equinox Gold Corp. (TSX:EQX, NYSE:EQX) ("Equinox Gold" or the "Company") has issued 24,761,905 common shares of the Company (the "Common Shares") to Ninety Fourth Investment Company LLC ("Ninety Fourth"), an affiliate of MDC Industry Holding Company LLC ("MDC") on conversion of a US$130 million convertible note (the "Note") held by MDC.
Further, Equinox Gold and Ninety Fourth have entered into an agreement with BMO Capital Markets to complete a secondary offering (the "Offering") of the Common Shares issued on conversion of the Note. Pursuant to the agreement, BMO Capital Markets has agreed to purchase, on a bought deal basis, 24,761,905 Common Shares from Ninety Fourth at a price of US$5.65 per Common Share, for total gross proceeds of approximately US$140 million.
Net proceeds of the Offering will be paid directly to Ninety Fourth and Equinox Gold will not receive any proceeds from the sale of Ninety Fourth's Common Shares.
Greg Smith, Equinox Gold's President and CEO, commented: "Conversion of the US$130 million convertible note reduces our current debt and meaningfully enhances our liquidity. As a key partner in our growth, we are pleased to see MDC partially capitalize on their long-term investment in the Company through the Offering, and we look forward to continuing to work together."
MDC's US$130 million Note was issued in 2019 with a US$5.25 per share conversion price. Following completion of the Offering, MDC will continue to hold a second US$130 million principal amount convertible note of Equinox Gold with a September 10, 2025 maturity date and a US$6.50 per share conversion price, which represents approximately 4.22% of the issued and outstanding Common Shares on an as-converted basis.
The Offering is expected to close on or about October 9, 2024, subject to customary closing conditions.
The Offering will be made in each of the provinces and territories of Canada, except Quebec, by way of a prospectus supplement (the "Prospectus Supplement") to the Company's short form base shelf prospectus dated October 1, 2024 (the "Base Shelf Prospectus"). The Company has filed a registration statement on Form F-10 (the "Registration Statement") (including the Base Shelf Prospectus) and will file the Prospectus Supplement with the United States ...
