Thursday, April 23, 2009

Equinox raises K847 billion

Equinox raises K847 billion
Written by Kabanda Chulu
Thursday, April 23, 2009 8:46:39 PM

EQUINOX Minerals has raised over K847 billion (184 million Canadian dollars) from selling part of its shares to finance expansion opportunities at the Lumwana mining project.

The Lumwana Copper Mines was officially opened last week by President Rupiah Banda. But the mining area also contains high grade deposits of uranium (yellow cake), which the mining company has been stockpiling while waiting for guidelines to commence full production.

Announcing the completion of the equity offering on Friday, Equinox Minerals president Craig Williams stated that a total of 102,235,000 common shares had been oversubscribed at a price of K7,303 (1.80 Canadian dollar) per share.

He stated that the equity offering had resulted in having gross proceeds worth K847.7 billion (184 million Canadian dollars).

ÒEquinox intends to use the net proceeds of the offering to improve its cash 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,Ó stated Williams.

To raise these funds, Equinox, which is listed at both the Toronto and Australian stock exchanges, last month engaged a syndicate of underwriters for the offering that was led by CIBC World Markets Inc. and Goldman Sachs Canada Inc.

Other underwriters included Cormark Securities Inc., GMP Securities L.P., Paradigm Capital Inc., Raymond James Ltd., Macquarie Capital Markets Canada Ltd and UBS Securities Canada Inc.

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