In response to a request from Solaris Resources, Equinox Gold has agreed to sell a portion of its shareholding in that company to Augusta Investments and a strategic shareholder for about C$82.5-million.
Equinox sold ten-million common shares in Solaris and granted the buyers warrants to purchase an additional five-million Solaris shares from the company in the next 12 months at C$10 a share. Should all the warrants be exercised, the total gross proceeds to Equinox would be C$132.5-million.
“As a strategic and supportive shareholder, Equinox Gold is pleased to accommodate Solaris in this transaction, which benefits both companies. The proceeds from this sale will further strengthen Equinox Gold’s already solid balance sheet as we continue to execute on our expansion and growth objectives,” said Christian Milau.
He stressed that Equinox remained committed to supporting Solaris as a long-term strategic shareholder. Equinox in 2018 spun out its copper assets into Solaris Copper to allow the company to focus on its Aurizona and Castle Mountain gold mines.
Solaris owns exploration assets in Ecuador, Mexico and Chile.