08/04/2009 - 08:58

Equinox shares fall on $181m raising

08/04/2009 - 08:58

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Shares in Equinox Minerals have slumped nearly 20 per cent in early trade after it released details of its $181 million capital raising.

Shares in Equinox Minerals have slumped nearly 20 per cent in early trade after it released details of its $181 million capital raising.

The West Perth-based company said it will offer a total of 88.9 million shares at a price of $C1.80 each to raise gross proceeds of $C160 million ($A181 million).

Shares in Equinox tumbled from $2.57 to $2.10 at 10:41 AEDT.

The placement is underwritten by a consortium of brokers led by CIBC and the Canadian affiliate of Goldman Sachs JBWere.

The underwriters have also been granted the option of buying an additional 13.34 million shares on the same terms as the offering, exercisable at any time within one month of the close of the offering.

If the over-allotment option is exercised in full, Equinox said it will raise a total of $C184 million.

The offer is due to close at around April 22.

Funds raised will be used to strengthen Equinox's capital position, fund expansion opportunities at the Lumwana copper project and to buy and cancel and existing net smelter return royalty in connection with Lumwana.

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