Abu Dhabi’s Mubadala invests $130m in Equinox Gold
TSX-V-listed Equinox Gold has secured a $130-million strategic investment from Abu Dhabi investment firm Mubadala Investment Company, which it would use to refinance a portion of its debt and to prepare for construction of Phase 1 at Castle Mountain, in the US.
Mubadala would invest in five-year convertible notes with a 5% interest rate convertible at $1.05 (C$1.38) a share, a 25% premium to the 10-day volume-weighted average share price, the company reported on Monday.
Equinox said that the investment significantly reduced the company’s borrowing costs and that it would increase near-term financial flexibility by deferring principal payments up to five years.
It also established Mubadala as a cornerstone and long-term financial partner to Equinox.
The company is advancing its Castle Mountain gold mine in California with the objective of ramping-up Phase 1 operations in early 2020.
Equinox closed at C$1.13 a share on Monday.
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