Dual-listed Equinox Gold has arranged up to $200-million in gold prepay and gold purchase and sale arrangements, providing the company with enhanced financial flexibility and additional cash liquidity to continue to fund its 60% interest for the construction of the Greenstone gold mine, in Ontario.
The company entered into a forward sale and prepay arrangement with a syndicate of its existing lenders whereby it has received an upfront payment of $140-million, in exchange for equal monthly deliveries of gold between October 2024 and July 2026 totalling 79 310 oz.
The proceeds can be increased to $150-million through execution of an additional gold prepay before the end of June this year.
Equinox also signed a nonbinding term sheet for a gold purchase and sale arrangement with Sandbox Royalties for $50-million in exchange for monthly deliveries equal to the greater of 33 oz and gold ounces equal to 1.2% of the monthly gold production from the Greenstone mine.
Gold deliveries will start in October and will continue until a total of 60 000 oz has been delivered.
Equinox reported that the Greenstone mine remained on budget and on track for first production in the first half of 2024.
Developed in a 60:40 partnership by Equinox and Orion Mining Finance, Greenstone will be one of the biggest mines in Canada, producing more than 400 000 oz/y for the first five years and more than five-million ounces of gold over its initial 14-year mine life.