Mr. Christian Milau reports
PACIFIC ROAD EXERCISES NON-DILUTION RIGHTS TO ACQUIRE ADDITIONAL COMMON SHARES OF EQUINOX GOLD
Pacific Road Resources Funds has provided notice to Equinox Gold Corp. of the exercise of its pre-existing non-dilution rights and will acquire an additional 21 million Equinox Gold common shares for aggregate proceeds to the company of $19,215,000, subject to TSX Venture Exchange approval. When combined with the 23,824,968 Equinox Gold common shares Pacific Road already owns, Pacific Road will hold an aggregate of 44,824,968 Equinox Gold common shares representing approximately 10.1 per cent of the company's outstanding common shares.
Pacific Road's non-dilution rights are being exercised in connection with the business combination completed on Dec. 22, 2017, whereby Equinox Gold (formerly Trek Mining Inc.) acquired all issued and outstanding securities of Newcastle Gold Ltd. and Anfield Gold Corp. The purchase price was calculated based on the five-day volume-weighted average price of Equinox Gold's common shares on the day the business combination closed. As disclosed in the joint management information circular related to the business combination, Pacific Road has certain non-dilution rights pursuant to an investment agreement dated May 7, 2015, whereby as long as Pacific Road holds at least 5 per cent of Equinox Gold's common shares, Pacific Road has the right to maintain all or a portion of its ownership interest in the company following any new issuance of Equinox Gold common shares.
About Equinox Gold Corp.
Equinox Gold is a Canadian mining company with a multimillion-ounce gold resource base, near-term and growing gold production from two past-producing mines in Brazil and California, and a long-term growth platform with a diverse portfolio of gold and copper assets in North and South America. Construction is under way at the company's Aurizona project in Brazil with the objective of pouring gold by year-end 2018, and a prefeasibility study is under way at the company's Castle Mountain project in California with the objective of restarting production.
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