West Perth-based mineral explorer Equinox Minerals Ltd will raise $192 million through a scrip offer to a group co-led by Sprott Securities and CIBC World Markets Inc.
West Perth-based mineral explorer Equinox Minerals Ltd will raise $192 million through a scrip offer to a group co-led by Sprott Securities and CIBC World Markets Inc., to fund ongoing costs at its Lumwana copper project in Zambia.
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 Announces Cdn$175 million (Aus$192 million) Bought Deal Financing
Equinox Minerals Ltd is pleased to announce that the Company has entered into a bought deal agreement with a syndicate of underwriters co-led by Sprott Securities Inc. and CIBC World Markets Inc. and including 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. (collectively, the "Underwriters").
Under the agreement, the syndicate will purchase from the Company 87.5 million units of the Company ("Units") at a price of Cdn$2.00 per Unit for gross proceeds of Cdn$175 million (Aus$192 million) (the "Offering"). Each Unit shall consist of one common share in the capital of the Company and one-quarter of one common share purchase warrant. Each full warrant shall be 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 Underwriters have the option to purchase up to an additional 13,125,000 Units at the issue price at any time prior to 30 days following the closing date for additional gross proceeds of Cdn$26.25 million (Aus$28.78 million). The Company will file a preliminary short form prospectus in all of the provinces and territories of Canada for the purpose of qualifying the common shares for distribution to the public as soon as possible and the offering is scheduled to close on or about March 6, 2007. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
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.
