Equinox Gold Announces Agreement to Sell its Koricancha Mill
TSX-V: EQX
OTC: EQXGF
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 Agreement to Sell its Koricancha Mill
July 17, 2018 – Vancouver, BC – Equinox Gold Corp . (TSX-V: EQX, OTC: EQXG F) (“ Equinox Gold ” or the
“Company”) is pleased to announce that the Company, along with certain minority shareholders of the
Koricancha Mill (“Koricancha”), has entered into an agreement to divest its interest in Koricancha to Inca One
Gold Corp. (TSX-V: IO) (“Inca One”) for aggregate consideration of C$16.3 million, plus certain recoverable
taxes, as follows:
• C$6 million in common shares of Inca One1;
• A C$9 million promissory note payable in: (i) three annual installments of C$2.5 million in cash or shares
of Inca One2, and (ii) one installment of C$1.5 million in cash two years from closing; and
• Certain working capital adjustments estimated at C$1.3 million payable in cash to Equinox Gold within
three years from closing and certain additional recoverable taxes as collected.
In connection with the sale of Koricancha, the Company will also extinguish the 3.5% stream on gold
production from Koricancha with payment to the stream holder of: (i) C$2.8 million in common shares of Inca
One1, and (ii) C$2.5 million in cash two years from closing.
“Equinox Gold is focused on becoming a leading mid-tier gold producer and advancing its core Aurizona and
Castle Mountain gold mines. Further to the recently announced copper company spinout, t his transaction
allows Equinox Gold to retain upside exposure to Koricancha as a meaningful stakeholder of Inca One while
staying consistent with the Company’s strategy of building and operating significant gold projects,”
commented Christian Milau, CEO of Equinox Gold. “Combining Koricancha with the operations of Inca One
achieves operating efficiencies and meaningful scale in an industry characterized by smaller, single -asset
operations, and provides a strong foundation for Inca One to build an industry leader in the Peruvian gold
milling space.”
Closing of the transaction is subject to the approval of the TSX Venture Exchange (“TSX-V”) and satisfaction
or waiver of other customary closing conditions.
On Behalf of the Board of Equinox Gold Corp.
“Christian Milau”
CEO & Director
Equinox Gold Contacts
Christian Milau, CEO
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Email: [email protected]
1 Calculated using a deemed Inca One common share price of C$0.055.
2 Payable in cash or Inca One shares at Inca One’s option, provided that Equinox Gold’s beneficial ownership of Inca One common
shares remains below 20% following any issuance of Inca One common shares under the promissory note.
- 2 -
About Equinox Gold
Equinox Gold is a Canadian mining company with a multi-million-ounce gold resource base, near -term and
growing gold production from two past -producing mines in Brazil and California, and a diverse portfolio of
gold and copper assets in North and South America. Construction is well advanced at the Company’s Aurizona
Gold Mine in Brazil with the objective of pouring gold by year-end 2018, and the Company recently released
the results of a prefeasibility study for its Castle Mountain Gold Mine in California with the objective of
restarting production in early 2020 . The Company’s plan to transfer all of its copper assets to a newly
incorporated company named Solaris Copper Inc. will be voted on at the Company’s annual and special
meeting of shareholders on July 26, 2018. Further information about Equinox Gold ’s current portfolio of
assets and long- term growth strategy is available at www.equinoxgold.com or by email at
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.
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”, “plan”, “ promissory
note”, “payable”, “subject to” 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 the sale of Koricancha to Inca
One, termination of the 3.5% stream on gold production from Koricancha, the receipt of TSX-V approval of the transaction, Inca
One’s ability to build an industry leader in the Peruvian gold milling space , construction activities underway at Aurizona, the
intention of restarting production at Castle Mountain, the planned transfer of copper assets to Solaris Copper Inc. (“Solaris
Copper”), 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 statements involve
known and unknown risks, uncertainties and other factors th at may cause actual results or events to differ materially from
those anticipated in such forward- looking statements, including the risks, uncertainties and other factors identified in the
Company’s periodic filings with Canadian securities regulators, and assumptions made with regard to the Company’s ability to
complete the t ransaction and transfer its interest in Koricancha to Inca One; the need for various approvals including TSX -V
approval in order to complete the transaction; the receipt of future payments from Inca One related to the sale of Koricancha;
Inca One’s ability to achieve the synergies contemplated under the transaction; the future value of Inca One shares and the
Company’s ability to increase the value of its inv estment as a shareholder of Inca One; the Company’s ability to complete
construction at Aurizona on budget or at all, and the timing to achieve production; the Company’s ability to recommence
production at Castle Mountain; the pending shareholder vote and final court approval regarding the transfer of copper assets
to Solaris Copper; the Company’s ability to achieve the anticipated benefits from the transfer of assets to Solaris Copper; a nd
the Company’s ability to achieve its expected growth and production potential. Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release and the Company does not undertake any
obligations to publicly update and/or revise any of the included forward- looking statements, whether as a result of additional
information, future events and/or otherwise, except as may be required by applicable securities laws.