All dollar amounts shown in United States dollars unless otherwise specified
VANCOUVER, BC, July 28, 2022 /PRNewswire/ – Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) (“Equinox Gold” or the “Company”) is pleased to announce that it has strengthened its balance sheet and increased liquidity by modifying its existing credit facility.
Equinox Gold and its lenders have reviewed the credit facility to:
- Increase the maximum amount available under the revolving facility by $400 million at $700 million
- $300 million drawn at the end of Q2 2022, $100 million drawn into July 2022
- $73 million of the remaining book value on the amortized term loan has been rolled into the revolving credit facility, eliminating the need to repay principal until mid-2026
- Add one $100 million accordion function not validated
- Reduce the price of advances by 0.25% to 0.50% depending on leverage ratios
- Extend the due date to July 28, 2026with the possibility of requesting an additional one-year extension
Pierre HardyEquinox Gold’s Chief Financial Officer, said, “The revised credit facility increases Equinox Gold’s liquidity, lowers our cost of capital and extends the maturity date of our debt while we focus on building Greenstone. The easily accessible, lower-cost capital increase reflects the growth and maturity of the company and provides increased financial flexibility as we focus on creating value for our shareholders in any economic environment. We appreciate the strong and continued support of our syndicate of lenders and their confidence in our long-term strategy.
Amounts drawn are subject to variable interest rates based on the Secured Overnight Funding Rate (Term SOFR) plus an applicable margin of 2.25% to 3.50%, based on the total net leverage ratio of the society.
Equinox Gold Contacts
Christian MilauChief executive officer
Rhylin BailieVice President, Investor Relations
Tel: +1 604-558-0560
E-mail: [email protected]
This press release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities laws. The forward-looking statements and forward-looking information contained in this press release relate to, among other things, the strength of the Company’s balance sheet, and the Company’s future liquidity and cash requirements. Forward-looking statements or information generally identified by words such as “will”, “potential”, “provide”, “capability”, “produce growth” and similar expressions and phrases or statements that certain actions, events or results “will “, “may”, “could” or “should”, or the negative connotation of these terms, are intended to identify forward-looking statements and information. Although Equinox Gold believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on any forward-looking statements as Equinox Gold cannot guarantee that such expectations will prove to be correct. Equinox Gold has based these forward-looking statements and information on Equinox Gold’s current expectations and projections regarding future events and such assumptions include: the Company’s strategic vision and expectations regarding exploration potential, production capabilities and future financial or operating performance; and the Company’s ability to successfully advance its growth and development projects, including the construction of Greenstone and expansions at Los Filos, Castle Mountain and Aurizona. Although Equinox Gold considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements or information contained in this press release.
Equinox Gold cautions that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such statements and information. forward-looking statements contained in this press release and Equinox Gold has made assumptions and estimates based on or relating to many of these factors. These factors include, but are not limited to: Equinox Gold’s ability to achieve exploration, production, cost and development expectations for its respective operations and projects; the remaining gold prices as estimated; exchange rates remaining as estimated; expectations regarding prices for energy inputs, labor, materials, supplies and services; the construction of Greenstone is completed and executed according to current expectations; the expansion projects at Los Filos, Castle Mountain and Aurizona are completed and executed according to current expectations; expectations regarding tonnage of ore to be mined and processed, ore grades and recovery; Mineral Reserve and Mineral Resource estimates and the assumptions on which they are based, no work stoppages and no unforeseen delays or interruptions in planned construction, development and production, including by blockade or industrial action; all necessary permits, licenses and regulatory approvals are received in a timely manner; the Company’s ability to comply with environmental, health and safety laws and other regulatory requirements; Equinox Gold’s ability to work productively with its joint venture partner and aboriginal partners in Greenstone; and the factors identified in the section entitled “Risks and Uncertainties” of Equinox Gold’s MD&A dated March 23, 2022 for the year ended December 31, 2021and in the section entitled “Risks Related to the Business” of Equinox Gold’s Annual Information Form dated March 24, 2022 for the year ended December 31, 2021both available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar. Forward-looking statements and information are designed to help readers understand the views of management at the time regarding future events and speak only as of the date on which they are made. Except as required by applicable law, Equinox Gold undertakes no obligation to update or publicly announce the results of any changes to any forward-looking statement or information contained or incorporated by reference to reflect actual results, events or future developments, changes in assumptions or changes in other factors affecting forward-looking statements and information. If Equinox Gold updates one or more forward-looking statements, no inference should be drawn that Equinox Gold will make additional updates with respect to such or other forward-looking statements. All forward-looking statements and information contained in this press release are expressly qualified in their entirety by this cautionary statement.
SOURCE Equinox Gold Corp.