Equinox raises $11.2 million

EQUINOX Resources Bankable Feasibility Study Note Financiers RMB Australia Holdings Limited, SG Australia Limited and the South African Export Development Fund have exercised all financier options, raising $11.2 million for the company.

The funds will primarily be applied to fully repay the company’s $US7 million note facility.

After costs the balance of the funds – about $1.2 million – will be applied to further advance Equinox’s Lumwana Project towards development.

Under the terms of an agreement negotiated by Equinox, its note financiers will:

p Exercise all of their 56 million options;

p Sell 35 million Equinox shares resulting from the exercise of those options at 34 cents a share to cover their costs via a sale process conducted by RBC Capital Markets; and

p Retain the balance of 21 million shares.

Equinox will pay a brokerage commission to RBC and, as a consequence of the early exercise of the options, share a proportion of the foreign exchange gain – due to the strength of the Australian dollar – on the note facility with the note financiers.