Equinox Minerals Limited

Equinox Minerals Limited

August 24, 2005 09:52 ET

Underwriters Exercise EQN Over Allotment Option Total Offering Raises Cdn$28.75 Million

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2005) -


Equinox Minerals Limited (TSX:EQN)(ASX:EQN) announced on August 08, 2005 that it had 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. (the "Underwriters") to raise Cdn$20 million through an underwritten private placement of 33,333,334 common shares priced at Cdn$0.60. This issue was subject to an Underwriters' over allotment provision for the further issue of up to an additional 14,600,000 common shares.

Equinox is pleased to announce that the Underwriters have elected to exercise the Underwriters' Option in respect of an aggregate of 14,600,000 additional common shares of Equinox. This brings the total offering to 47,933,334 shares at a price of Cdn$0.60 per common share to realize gross proceeds of Cdn$28,760,000.

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.com

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.

Contact Information

  • Equinox Minerals Limited
    Craig R. Williams
    President and Chief Executive Officer
    +61 (0) 8 9322 3318
    Equinox Minerals Limited
    Michael Klessens
    V.P. Finance and CFO
    +61 (0) 8 9322 3318
    Equinox Minerals Limited
    Kevin van Niekerk
    V.P. Investor Relations/Corporate Development
    +1 (416) 865 3393