All amounts are in United States dollars unless otherwise
indicated
VANCOUVER, May 7, 2019
/CNW/ - Equinox Gold Corp. (TSX-V: EQX, OTC: EQXFF)
("Equinox Gold" or the "Company") has issued approximately
$9.66 million in convertible notes
(the "Notes") to funds managed by Pacific Road Resources Funds
("Pacific Road"), pursuant to Pacific Road's pre-existing
non-dilution right related to an investment agreement dated
May 7, 2015. The Notes mature
April 12, 2024, bear interest at a
fixed rate of 5% per year payable quarterly in arrears and are
convertible at the holder's option into common shares ("Shares") of
the Company at a conversion price of $1.05 per share. These are the same terms as the
Company's previously announced issuance of $130 million in convertible notes to Mubadala
Investment Company.
The Company intends to use the proceeds from the Notes for
general corporate and working capital purposes. The Notes, and the
Shares into which the Notes are convertible, are subject to a hold
period of four months plus one day in accordance with applicable
Canadian securities laws.
About Pacific Road
Pacific Road is a long-term supportive shareholder of Equinox
Gold, having made its initial investment in 2015 to support the
restructuring of the balance sheet and redevelopment of Equinox
Gold's Aurizona Gold Mine. Pacific Road remains supportive of the
Company's growth agenda and its focus on financial, social and
environmental responsibility.
About Equinox Gold
Equinox Gold is a Canadian mining company with a
multi-million-ounce gold reserve base, gold production from its
Mesquite Gold Mine in California,
and near-term production from past-producing mines in Brazil and California. Commissioning is
underway at the Company's Aurizona Gold Mine in Brazil and the Company is advancing its Castle
Mountain Gold Mine in California.
Further information about Equinox Gold's portfolio of assets and
its long-term growth strategy is available at www.equinoxgold.com
or by email at ir@equinoxgold.com.
Cautionary Notes and Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation. All statements, other than
statements of historical fact, are forward-looking
statements. Forward-looking statements or information in this news
release relate to, among other things: the ability of the Company
to successfully complete commissioning activities and achieve
commercial production at Aurizona; development and timing of
anticipated production at Castle Mountain; the growth potential of
the Company; and the intended use of proceeds from the Notes.
Forward-looking statements or information generally identified by
the use of the words "will", "advancing", "planned", "anticipated",
"expected", "estimated", "continue", "near-term", "ramping-up" and
similar expressions and phrases or statements that certain
actions, events or results "may", "should", or "be achieved", or
the negative connotation of such terms, are intended to
identify forward-looking statements and information. Although the
Company believes that the expectations reflected in such
forward-looking statements and information are reasonable, undue
reliance should not be placed on forward-looking statements since
the Company can give no assurance that such expectations will prove
to be correct. The Company has based these forward-looking
statements and information on the Company's current expectations
and projections about future events and these assumptions include:
tonnage of ore to be mined and processed; ore grades and
recoveries; prices for gold remaining as estimated; the
commissioning and planned production at Aurizona and development at
Castle Mountain being completed and performed in accordance with
current expectations; currency exchange rates remaining as
estimated; availability of funds for the Company's projects and
future cash requirements; capital, decommissioning and reclamation
estimates; the Company's mineral reserve and resource estimates and
the assumptions on which they are based; prices for energy inputs,
labour, materials, supplies and services; no labour-related
disruptions and no unplanned delays or interruptions in scheduled
development and production; all necessary permits, licenses and
regulatory approvals are received in a timely manner; and the
Company's ability to comply with environmental, health and safety
laws. While the Company considers these assumptions to be
reasonable based on information currently available, they may prove
to be incorrect. Readers are cautioned not to put undue reliance on
the forward-looking statements or information contained in this
news release.
The Company cautions that forward-looking statements and
information involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and the Company has made assumptions and estimates based on
or related to many of these factors. Such factors include,
without limitation: fluctuations in gold prices; fluctuations in
prices for energy inputs, labour, materials, supplies and services;
fluctuations in currency markets; operational risks and hazards
inherent with the business of mining (including environmental
accidents and hazards, industrial accidents, equipment breakdown,
usual or unexpected geological or structural formations, cave-ins,
flooding and severe weather); inadequate insurance, or inability to
obtain insurance to cover these risks and hazards; employee
relations; relationships with, and claims by, local communities and
indigenous populations; the Company's ability to obtain all
necessary permits, licenses and regulatory approvals in a timely
manner or at all; changes in laws, regulations and government
practices, including environmental, export and import laws and
regulations; legal restrictions relating to mining; risks relating
to expropriation; increased competition in the mining industry; and
those factors identified in the Company's management information
circular dated March 18, 2019 and in
its MD&A for the year ended December 31,
2018, which are available on SEDAR at www.sedar.com.
Forward-looking statements and information are designed to help
readers understand management's views as of that time with respect
to future events and speak only as of the date they are made.
Except as required by applicable law, the Company assumes no
obligation and does not intend to update or to publicly announce
the results of any change to any forward-looking statement or
information contained or incorporated by reference to reflect
actual results, future events or developments, changes in
assumptions or changes in other factors affecting the
forward-looking statements and information. If the Company updates
any one or more forward-looking statements, no inference should be
drawn that the Company will make additional updates with respect to
those or other forward-looking statements. All forward-looking
statements and information contained in this news release are
expressly qualified in their entirety by this cautionary
statement.
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SOURCE Equinox Gold Corp.