Equinox Gold Announces $130 Million Strategic Investment by Mubadala Investment Company
TSX-V: EQX
OTC: EQXFF
Suite 730 – 800 West Pender St., Vancouver, BC Canada V6C 2V6
[email protected] +1 604.558.0560 www.equinoxgold.com
NEWS RELEASE
Equinox Gold Announces $130 Million Strategic Investment by Mubadala Investment Company
All amounts are in United States dollars unless otherwise indicated
February 25, 2019 – Vancouver, BC – Equinox Gold Corp. (TSX-V: EQX, OTC: EQXFF) (“Equinox Gold” or the
“Company”) is pleased to announce it has entered into a definitive agreement with Mubadala Investment
Company (“Mubadala”) whereby Mubadala has agreed to purchase $ 130 million in convertible notes (the
“Notes”) from Equinox Gold (the “Investment”). Proceeds from the Investment will be used to refinance a
portion of existing corporate and project debt, for general and working capital purposes and toward
construction of Phase 1 at Castle Mountain.
Investment Highlights
• Investment of $130 million in 5 -year convertible notes with a 5% interest rate convertible at $ 1.05
(C$1.38) per share, a 25% premium to the 10-day volume weighted average share price (“VWAP”).
• Significantly reduces the Company’s borrowing costs and increases near-term financial flexibility by
deferring principal payments up to five years.
• Establishes Mubadala, which actively manages its diversified portfolio to deliver sustainable returns
to its shareholder, the Government of Abu Dhabi, as a cornerstone and long-term financial partner
to Equinox Gold as the Company executes on its growth strategy.
“Mubadala’s investment underscores the value and upside of Equinox Gold’s existing asset base and
significantly enhances our near-term financial capacity as we prepare for Phase 1 construction at the Castle
Mountain project,” said Christian Milau, CEO of Equinox Gold.
Ross Beaty, Equinox Gold’s Chairman, added, “Mubadala has an excellent reputation for being a long -term
supportive shareholder. I warmly welcome them as partners in our mission to build a great gold mining
company.”
“Equinox Gold combines experienced lead ership with a strong suite of assets and a clear value creation
strategy,” said Mohamed Al Suwaidi, Director of Metals and Mining at Mubadala. “We see a great
opportunity to develop our partnership with the business over the years ahead.”
Investment Terms
The Notes will have a 5 -year term and bear interest at 5% per year payable quarterly in arrears. The Notes
will be convertible at the holder’s option into common shares of the Company (the “Shares”) at a conversion
price of $1.05 (C$1.38), representing a 25% premium to the 10-day VWAP of the Shares on the TSX Venture
Exchange. Assuming full conversion of the Notes, the holder would be entitled to receive approximately 123.8
million Shares of the Company, representing approximately 18% of Equinox Gold’s outstanding Shares on a
partially diluted basis.
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The Notes will be secured against all assets of the Company and subordinate to existing senior credit facilities.
The Company and the holder of the Notes will have certain early redemption and other rights subject to the
provisions of the Notes.
In connection with the Investment, Equinox Gold and Mubadala will enter into an investor rights agreement
providing Mubadala, among certain other rights, the right to a nominee on the Company’s board of directors
and standard anti-dilution rights.
Closing of the Investment is subject to receipt of all necessary regulatory and stock exchange approvals, as
well as satisfaction of customary closing conditions, the consent of certain lenders to the Company, execution
of intercreditor agreements and execution of definitive documentation.
The Notes, and the Shares into which the Notes are convertible, have not been and will not be registered
under the U.S. Securities Act of 1933, as amended or qualified by a prospectus in Canada. This news release
is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities and shall not
constitute an offer to sell or solicitation of an offer to buy, or a sale of, the Notes or any other securities in
any jurisdiction in which such offer, solicitation or sale is unlawful.
About Mubadala
Mubadala invests globally and actively manages a diversified portfolio to deliver sustainable returns to its
shareholder, the Government of Abu Dhabi. Mubadala’s $225 billion portfolio spans four continents with
priority sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas,
petrochemicals, utilities, healthcare, real estate, defense services, pharma and medtech, agribusiness and a
global portfolio of financial holdings. Mubadala is a trusted partner, an engaged shareholder and a
responsible global company that is committed to ethics and world -class standards. For more information
about Mubadala please visit www.mubadala.com.
About Equinox Gold
Equinox Gold is a Canadian mining company with a multi-million-ounce gold reserve base, gold production
from its Mesquite Gold Mine in California, and near-term production growth from two past-producing mines
in Brazil and California. Commissioning is underway at the Company’s Aurizona Gold Mine in Brazil with the
objective of achieving commercial production around the end of Q1-2019, and the Company is advancing its
Castle Mountain Gold Mine in California with the objective of ramping-up Phase 1 operations in early 2020.
Further information about Equinox Gold’s portfolio of assets and long -term growth strategy is available at
www.equinoxgold.com or by email at [email protected].
Equinox Gold Contacts
Christian Milau, CEO
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Email: [email protected]
Cautionary Notes and Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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This document contains certain forward -looking information and forward -looking statements within the meaning of
applicable securities legislation (collectively “forward -looking statements”). The use of the words “will”, “objective”,
“advancing”, “strategy”, “transitions” and similar expressions are intended to identify forward- looking statements.
Forward-looking statements contained in this news release include, but are not limited to, statements regarding closing
of the Investment, inability to complete the Investment on the proposed terms or at all, delays in obtaining or inability
to obtain consent of lenders or to execute intercreditor agreements or obtain required regulato ry and exchange
approvals, construction activities and the planned restart of production at Aurizona; planned development and
anticipated production at Castle Mountain; and the growth potential of the Company. Although the Company believes
that the expectations reflected in such forward- looking statements and/or information are reasonable, undue reliance
should not be placed on forward- looking statements since the Company can give no assurance that such expectations
will prove to be correct. These forward-looking statements may relate to the Company’s future outlook and anticipated
events, such as the Company’s ability to successfully close the Investment, successfully operate Mesquite Mine, the
Company’s ability to achieve the results anticipated in the Aur izona feasibility study, the Company’s ability to complete
Aurizona construction activities on time and on budget, the Company’s ability to restart production at Aurizona and
timing of the anticipated restart of production, the Company’s ability to achieve the annual production estimated for
Aurizona, the Company’s ability to restart production at Castle Mountain and timing of the anticipated restart of
production, the Company’s ability to achieve the results anticipated in the Castle Mountain prefeasibilit y study, and
statements regarding the Company’s assets, business strategy, plans and objectives. The Company has based these
forward-looking statements largely on the Company’s current expectations and projections about future events and
financial trends affecting the financial condition of the Company’s business. These forward- looking statements were
derived using numerous assumptions regarding expected growth, results of operations, performance and business
prospects and opportunities that could cause the Company’s actual results to differ materially from those in the forward-
looking statements. While the Company considers these assumptions to be reasonable based on information currently
available, they may prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on these forward-
looking statements. Forward- looking statements should not be read as a guarantee of future performance or results.
Forward-looking statements are based on information available at the time those statement s are made and/or
management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties
that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-
looking statements. Forward -looking statements speak only as of the date those statements are made. Except as
required by applicable law, the Company assumes no obligation to update or to publicly announce the results of any
change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future
events or developments, changes in assumptions or changes in other factors affecting the forward- looking statements.
If the Company updates any one or more forward -looking statements, no inference should be drawn that the Company
will make additional updates with respect to those or other forward-looking statements. All forward-looking statements
contained in this press release are expressly qualified in their entirety by this cautionary statement.