West Perth-based mineral explorer Equinox Minerals Ltd has raised more than $230 million through an equity offer to raise funds for its Lumwana copper project in Zambia, after exercising its over-allotment option.
West Perth-based mineral explorer Equinox Minerals Ltd has raised $232.2 million through an equity offer to raise funds for its Lumwana copper project in Zambia, after exercising its over-allotment option.
The company had entered into a bought deal agreement with a syndicate of underwriters co-led by Sprott Securities Inc. and CIBC World Markets Inc.
Apart from funding ongoing development costs of the Lumwana project, the company will also use the funds to undertake a feasibility study on the treatment of the Lumwana uranium ore, the funding of ongoing exploration for both copper and uranium in Zambia and general working capital purposes.
Equinox has raised most of the capital for its Lumwana project through the Canadian market.
The full text of a company announcement is pasted below
Equinox Minerals Ltd is pleased to announce today that it has closed its equity offering previously announced on February 16, 2007 and February 19, 2007, including the exercise of the over-allotment option, and issued a total of 105.625 million units ("Units") at a price of Cdn$2.00 per Unit for gross proceeds of Cdn$211.25 million (Aus$232.20 million) (the "Offering").
Each Unit consists of one common share in the capital of the Company and one-quarter of one common share purchase warrant.
Each full warrant is exercisable for one common share at an exercise price of $2.30 per share for a period of 14 months following closing of the Offering. The syndicate of underwriters was co-led by Sprott Securities Inc. and CIBC World Markets Inc. and included Dundee Securities Corporation, GMP Securities L.P., Paradigm Capital Inc., Raymond James Ltd., RBC Capital Markets Inc., TD Securities Inc. and Laurentian Bank Securities Inc.
The net proceeds from the Offering will be used to fund ongoing costs associated with the development of the Company's Lumwana Project in Zambia (including village, hedging, interest and debt service costs prior to commissioning).
The Company will also use funds to undertake a feasibility study on the treatment of the Lumwana uranium ore, the funding of ongoing exploration for both copper and uranium in Zambia and general working capital purposes.
Lumwana, owned 100% by Equinox, is located in the North Western Province of the Republic of Zambia. It is anticipated that the Lumwana mine will produce an average of 169,000 tonnes of copper metal per year contained in concentrates for the first 6 years of its 37 year mine life and construction is on schedule for commissioning in Q2 2008.
The Units offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
