Abu Dhabi-based Mubadala Investment Company has agreed to purchase $130 million in convertible notes from Canada’s Equinox Gold, a multi-asset mining company.

Proceeds from the Investment will be used to refinance a portion of existing corporate and project debt, for general and working capital purposes and toward construction of Phase 1 at Castle Mountain.

Investment highlights

• Investment of $130 million in 5-year convertible notes with a 5 per cent interest rate convertible at $1.05 (C$1.38) per share, a 25 per cent premium to the 10-day volume weighted average share price (VWAP).

• Significantly reduces the Company’s borrowing costs and increases near-term financial flexibility by deferring principal payments up to five years.

• Establishes Mubadala, which actively manages its diversified portfolio to deliver sustainable returns to its shareholder, the Government of Abu Dhabi, as a cornerstone and long-term financial partner to Equinox Gold as the Company executes on its growth strategy.

“Mubadala’s investment underscores the value and upside of Equinox Gold’s existing asset base and significantly enhances our near-term financial capacity as we prepare for Phase 1 construction at the Castle Mountain project,” said Christian Milau, CEO of Equinox Gold.Ross Beaty, Equinox Gold’s chairman, added: “Mubadala has an excellent reputation for being a long-term supportive shareholder. I warmly welcome them as partners in our mission to build a great gold mining company.”

“ Equinox Gold combines experienced leadership with a strong suite of assets and a clear value creation strategy,” said Mohamed Al Suwaidi, director of Metals and Mining at Mubadala.

“We see a great opportunity to develop our partnership with the business over the years ahead.”In connection with the Investment, Equinox Gold and Mubadala will enter into an investor rights agreement providing Mubadala, among certain other rights, the right to a nominee on the Company’s board of directors and standard anti-dilution rights. – TradeArabia News Service

Copyright 2019 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.