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Equinox halts trading, hopes to raise $124m for Lumwana

Equinox halts trading, hopes to raise $124m for Lumwana
Written by Chiwoyu Sinyangwe
Monday, April 20, 2009 4:34:24 AM

EQUINOX Minerals last week announced it has entered a trading halt in order to raise 181 million Australian dollars [US $124 million] from Australian and Canadian investors to go towards the Lumwana Copper Mine.

The trading halt is both at the Canadian and Australian Stock Exchanges where Equinox Minerals is dual-listed. According to market data obtained over the weekend, Equinox Minerals stated that the details of the offering, including the size and price, were yet to be determined.

Market data disclosed that Equinox Minerals planned to use the proceeds to strengthen its capital position, evaluate and fund expansion opportunities at its Lumwana Copper project, and to buy and extinguish a royalty relating to the project.

The move comes just a week after Equinox reorganised its debt facility.

"It had a US $224 million [314 million Australian dollars] payment due at the end of the calendar year, but under the new terms, the payment has been reduced to US $138 million over the same period and that the big payment was US $104 million due in September this year.

"There was no requirement in the refinancing to raise equity, but the chief executive, Craig Williams, said Equinox had opted for it rather then closing out its quite attractive hedge book," the market data read in part.

The flagship Lumwana Copper Mine came on line at the end of last year and is expected to produce 172,000 tonnes of cooper this year, making it a bigger producer than the slimmed down OZ Minerals, which will retain the Prominent Hill mine.

Lumwana Copper Mine, which has a mine life of 37 years, has attracted the interest of many potential suitors, including First Quantum Minerals of Canada, which owns a 19 per cent blocking stake.

Equinox shares have fallen 56 per cent since they traded as high as 5.60 Australian dollars a year ago. Shares last traded at 2.57 Australian dollars.

Last Friday, President Rupiah Banda officially opened Lumwana Copper Mine- Africa's largest open pit mine.

Labels: EQUINOX, LCM

posted by MrK @ 3:35 AM