Equinox Minerals Limited

Equinox Minerals Limited

August 08, 2005 08:24 ET

Equinox Announces $20 Million Equity Offering

TORONTO, ONTARIO--(CCNMatthews - Aug. 8, 2005) -


Equinox Minerals Limited (TSX:EQN)(ASX:EQN) ("Equinox") is pleased to announce that it has entered into an agreement co-led by Sprott Securities Inc. and Paradigm Capital Inc. and including Dundee Securities Corporation, Raymond James Ltd and TD Securities Inc. to raise Cdn$20 million through an underwritten private placement of 33,333,334 common shares priced at $0.60. The issue is subject to an over-allotment provision for the purchase of up to an additional 14,600,000 common shares. The transaction is expected to close on or before August 25, 2005 and is subject to regulatory approval.

The net proceeds from the offering will be used primarily for Equinox's Lumwana Copper Project in Zambia, including expenditure for a portion of the company's contribution to the initial capital cost of the Lumwana Project, debt financing costs, exploration activities and for general working capital purposes.

Equinox is a Canadian-Australian listed resource company engaged principally in the exploration and development of mineral properties in Zambia, and exploration in Australia and Peru. Equinox has completed a Bankable Feasibility Study at its 100% owned Lumwana Project in Zambia which is scheduled to produce an average of 125,000 tpa (275 million lbs/year) of copper over an 18 year mine life, with over 140,000 tpa (310 million lbs/year) of copper being produced in the initial 5 year period. With Measured and Indicated Resources of 269 million tonnes of ore grading at 0.8% Cu, Equinox plans to develop Lumwana to become a mid-tier copper mining company.

The common shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

For information on Equinox and technical details on the Lumwana Project please refer to the company website at www.equinoxminerals

Forward Looking Statements

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Toronto and Australian securities authorities. The independent feasibility study, prepared by Aker Kvaerner, Golder Associates and Investor Resources Ltd has been disclosed in the Technical Report dated April 2004, and is compliant with the JORC Code and National Instrument 43-101. Unless otherwise indicated, technical information contained in this release is based on information compiled by a "Qualified Person" who is either a corporate member of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists or the CIM.

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