Equinox Minerals Limited

Equinox Minerals Limited

April 07, 2009 10:19 ET

Equinox Announces Terms of Equity Offering

TORONTO, ONTARIO--(Marketwire - April 7, 2009) -


Equinox Minerals Limited (TSX:EQN)(ASX:EQN) ("Equinox" or the "Company") announced today that, in connection with its previously announced public offering, it has entered into an underwriting agreement with a syndicate of underwriters led by CIBC World Markets Inc. and Goldman Sachs Canada Inc., an affiliate of Goldman Sachs JBWere Pty Ltd., and including Cormark Securities Inc., GMP Securities L.P., Paradigm Capital Inc., Raymond James Inc., Macquarie Capital Markets Canada Ltd. and UBS Securities Canada Inc. (collectively, the "Underwriters") to sell 88,900,000 common shares of the Company (the "Shares") at a price of Cdn$1.80 per Share to raise gross proceeds of Cdn$160,020,000 (the "Offering"). The Shares are being offered by way of a short form prospectus in each of the provinces and territories of Canada, other than Quebec. CIBC World Markets Inc. and Goldman Sachs JBWere Pty Ltd. have been appointed joint book runners for the transaction.

The Underwriters have also been granted an option to purchase up to an additional 13,335,000 Shares on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering (the "Over-Allotment Option"). If the Over-Allotment Option is exercised in full, the total gross proceeds to Equinox will be Cdn$184,023,000.

Equinox intends to use the net proceeds of the Offering to strengthen its capital position, to evaluate and fund expansion opportunities at the Lumwana Project, to purchase and extinguish an existing net smelter return royalty in connection with the Lumwana Project, and for general corporate purposes.

The Offering is scheduled to close on or about April 22, 2009 and is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Shares offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

An amended and restated preliminary short form prospectus (the "preliminary prospectus") relating to the Offering will be filed today with securities commissions or similar authorities in each of the provinces and territories of Canada, other than Quebec. A copy of the preliminary prospectus will also be lodged with the Australian Securities Exchange. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained upon request without charge from CIBC World Markets Inc. and Goldman Sachs Canada Inc. A copy of the preliminary prospectus may also be obtained on SEDAR (www.sedar.com). There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

Craig R. Williams - President & Chief Executive Officer

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

Cautionary Language and Forward Looking Statements

This press release contains "forward-looking statements" and "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performances of Equinox, its subsidiaries and their respective projects, the future price of copper and uranium, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, estimated costs of future production, the sale of future production and the performance of off-takers, capital, operating and exploration expenditures, costs and timing of the development of the Lumwana Project, the costs of Equinox's hedging policy, costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "is expecting", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans for 2009. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Equinox and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form.
Although Equinox has attempted to identify statements containing important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein are made as of the date of this document based on the opinions and estimates of management on the date statements containing such forward looking information are made, and Equinox disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information.

Readers are cautioned not to rely solely on the summary of such information contained in this release, but should read the preliminary prospectus dated April 7, 2009 and the documents incorporate by reference therein, all of which is filed on SEDAR (www.sedar.com), and any future amendments to such preliminary prospectus. Readers are also directed to the cautionary notices and disclaimers contained herein.

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