Equinox Minerals Limited
TSX : EQN
ASX : EQN

Equinox Minerals Limited

April 03, 2006 13:37 ET

Equinox Closes First Tranche of US$30 Million Private Placement to ZCCM Investments Holdings

TORONTO, ONTARIO--(CCNMatthews - April 3, 2006) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Equinox Minerals Limited (TSX:EQN)(ASX:EQN) ("Equinox" or the "Company") is pleased to announce that it has successfully closed the first of two tranches of its non-brokered US$30 million private placement of Equinox common shares ("Shares") to ZCCM Investments Holdings Plc (LSE: ZCC) ("ZCCM") as announced on March 22, 2006.

Equinox raised gross proceeds of C$17,440,500 (US$15,000,000) from this initial placement of 9,227,777 Shares issued to ZCCM on March 31, 2006 (the "Initial Subscription Date").

The subscription price was C$1.89 per Share which equals 1.20 times the volume-weighted average trading price ("VWAP") of Shares on the Toronto Stock Exchange ("TSX") calculated over the five business day period immediately preceding the Initial Subscription Date. As announced on March 22, 2006, ZCCM will also purchase, no later than June 30, 2006, an additional US$15 million of Equinox Shares at a price per Share equal to 1.15 times the 5-day VWAP of Shares on the TSX calculated over the period immediately preceding the date of closing of the second subscription.

The net proceeds of the offering will be used to fund, in part, the development of Equinox's Lumwana copper project in Zambia, for expanded Zambian exploration and for general working capital.

The securities referred to in this announcement have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

ZCCM is the 86.6% owned subsidiary investment vehicle of Zambia Consolidated Copper Mines Ltd., the national mining company of the Government of the Republic of Zambia. ZCCM holds equity investments in many Zambian mining organizations including Chambishi Metals Plc, Chibuluma Mines Plc, Copperbelt Energy Corporation, Kansanshi Mining Plc, Konkola Copper Mines Plc, Luanshya Copper Mines Plc and Mopani Copper Mines Plc.

On Behalf of the Board of Directors of Equinox.

Cautionary Language and 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 Canadian and Australian securities authorities.

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