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Equinox Gold Ord Shs T.EQX

Alternate Symbol(s):  EQX

Equinox Gold Corp. is a Canadian mining company operating entirely in the Americas, with eight producing gold mines. Its operating mines include Aurizona Gold Mine, Fazenda Gold Mine, Santa Luz Gold Mine, RDM Gold Mine, Los Filos Gold Mine, Castle Mountain Gold Mine, Mesquite Gold Mine and Greenstone Gold Mine. Its development projects include Greenstone Project, Los Filos Expansion, Castle Mountain Expansion, and Aurizona Expansion. Aurizona Gold Mine is an open-pit gold mine located in northeastern Brazil near the town of Godofredo Viana in Maranhao State. Greenstone Gold Mine is a multi-million-ounce gold project located in the top-tier mining jurisdiction of Ontario, Canada. Fazenda Gold Mine is located within the Maria Preta mining district in Bahia State, Brazil. RDM Gold Mine is located in Minas Gerais State, Brazil, about 560 kilometers (km) north of the state capital city of Belo Horizonte. The Los Filos Mine Complex is in Guerrero State, Mexico.


TSX:EQX - Post by User

Bullboard Posts
Post by Markzandon Feb 02, 2017 1:04am
347 Views
Post# 25787420

Luna Gold and JDL Gold Announce Merger

Luna Gold and JDL Gold Announce Merger
 
 

Luna Gold and JDL Gold Announce Merger to Create a Multi-Asset Mining Company and Concurrent C$27 Million (US$20 Million) Equity Financing

VANCOUVER, BC--(Marketwired - February 01, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

All amounts are in United States dollars unless otherwise indicated.

Luna Gold Corp. (TSX: LGC) ("Luna Gold") and JDL Gold Corp. (TSX VENTURE: JDL) ("JDL") are pleased to announce that they have entered into an arrangement agreement (the "Agreement") to combine their businesses, creating a multi-asset mining company (the "Transaction"). The combined company intends to change its name to Trek Mining Inc. ("Trek") and expects to trade on the TSX Venture Exchange ("TSX-V") under the ticker symbol "TREK".

Trek Mining Highlights

  • Strong leadership team: Combined executive team and directors have the financial, technical, construction and operations experience to advance the combined assets and build a leading mid-tier gold producer
  • Significant cash position: Well capitalized with approximately C$66 M ($50 M) in cash and no cash debt
  • Simplified balance sheet: All cash debt repaid or settled in equity
  • Diversified asset portfolio: Asset portfolio anchored by near-term production from the Aurizona gold project in Brazil, increasing gold production from milling operations at the Koricancha Mill in Peru, and a pipeline of exploration-stage projects, providing a platform for growth
  • De-risks Aurizona development: Strong cash position increases construction financing flexibility for Aurizona and allows for purchase of long-lead capital items following completion of the feasibility study
  • Enhanced capital markets profile: Broad shareholder base with supportive and recognized investors and improved liquidity

Trek will be well-funded, with approximately C$66 million ($50 million) in cash and no cash debt, and will be strongly positioned to advance the Aurizona gold project ("Aurizona" or the "Aurizona Project") to production. The Transaction also accelerates exploration at Aurizona with a focus on the drill-ready targets directly along strike from the existing reserves and resources at the Piaba open pit. Trek's portfolio includes the gold-producing Koricancha Mill in Peru and a robust pipeline of gold and copper exploration assets in South and North America.

Christian Milau, CEO of Luna Gold said: "This transaction achieves a number of our near-term growth objectives and is the next step toward our vision of building a leading mid-tier gold producer. We have spent our first six months at Luna Gold focused on development of Aurizona. Our cash position post Transaction, together with a simplified balance sheet, will provide a solid foundation to advance Aurizona to production and accelerate exploration efforts. We see significant potential in JDL's asset portfolio and believe the combined company puts us on an exciting growth path."

David Lowell, Chairman of JDL and incoming Director of Trek, said: "We are excited to team with Luna Gold in building a meaningful new mining company. JDL's shareholders will participate in the near-term gold production and exceptional exploration upside at Aurizona. The exploration potential, both on trend and regionally, represents a substantial opportunity for extension of the mine life and new discoveries. I look forward to joining the Trek Mining board of directors and continuing to work for the benefit of all our stakeholders."

Lukas Lundin said: "I am pleased to support the merger of JDL and Luna Gold to create Trek Mining. I am enthusiastic about Trek's current portfolio of assets and am confident that this combination of management, assets and opportunity provides Trek with a strong foundation for success and momentum going forward."

Pacific Road Resources Fund ("Pacific Road") and Sandstorm Gold Ltd. ("Sandstorm"), the two largest shareholders of Luna Gold, and Lorito Holdings (Guernsey) Ltd. and Zebra Holdings and Investments (Guernsey) Ltd., the largest shareholders of JDL (both controlled by a trust settled by the late Adolf H. Lundin), have entered into support agreements to vote in favour of the Transaction.

Upon completion of the Transaction, Trek's asset base will consist of:

  • Cash of approximately C$66 million ($50 million) including marketable securities 1
  • 100% ownership of the feasibility-stage Aurizona Project in Brazil, a past-producing open-pit gold mine that is anticipated to recommence production by year-end 2018, targeting average annual gold production of 150,000 ounces for the first five years with all-in sustaining costs of $708/ounce 2
  • 75% ownership of the Koricancha Mill, an operating gold ore processing facility in Peru 3
  • 100% ownership of the Warintza copper-molybdenum exploration-stage project in Ecuador, with an inferred resource of 195 million tonnes at a copper equivalent grade of 0.61% 4
  • 100% ownership of the high-grade past-producing Elk Gold project in British Columbia, Canada 5
  • 100% ownership of the Ricardo Claim block in Chile, strategically located on the West Fissure fault that hosts numerous porphyry copper deposits including Escondida and Chuquicamata 6

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