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Yamana sells Equinox Gold shares, warrants for up to C$201m

13th April 2020

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Canadian gold senior Yamana Gold on Monday announced that it would sell shares and warrants in Vancouver-headquartered Equinox Gold for C$201-million.

The miner entered into an agreement with Stifel and Cormark Securities to sell 12-million units at C$10 each to qualified purchasers, for gross proceeds of C$120-million.

The dealers have committed to purchase from Yamana any unsold units at a price of C$10 each, subject to customary conditions for ‘bought deal’ financing.

Each unit consists of one common share of Equinox Gold, owned by Yamana, and one-half of a common share purchase warrant of Yamana. Each warrant shall entitle the holder to acquire one additional common share of Equinox owned by Yamana at an exercise price of C$13.50 for a term of nine months from the date of issue. In the event all warrants are exercised, the total gross proceeds to Yamana would be C$201-million.

Yamana said it would use the net proceeds of the sale transaction for general corporate purposes.

The transaction is scheduled to close on April 15.

Should Yamana sell all the shares and the warrants are exercised in full, its shareholding in Equinox will reduce from nearly 9% to 0.49%.

Yamana also currently holds warrants of Equinox exercisable to acquire an aggregate of 8 345 501 Equinox shares, representing 3.86% of the issued and outstanding Equinox shares. The sale transaction will not result in any change to Yamana’s ownership in Equinox warrants. If all the Equinox warrants held by Yamana were exercised, Yamana would hold about 7.22% of the issued and outstanding Equinox shares on a partially-diluted basis, assuming no other convertible securities of Equinox are exercised.

Edited by Creamer Media Reporter

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