In an US$18.2 million deal that will see the Equinox chairman acquire shares and convertible debt from Sandstorm Gold (CN:SSL), Beaty has ended up with 41.4 million shares, or 9.8%, of the company.
Equinox was formed following a three-for-one deal that saw Trek Mining, Newcastle Gold and Anfield Gold combine. The new entity has two advanced-stage gold projects (Aurizona in Brazil and Castle Mountain in California) and combined resources of more than 8 million ounces of gold.
It plans to pour first gold from the 136,000 ounce per annum Aurizona project by the end of the year, following a recent $85 million funding pact with Sprott Private Resources.
It will then turn its attention to reviving the former-operating Castle Mountain gold mine, which could end up producing more than 300,000ozpa as part of a two-phase development.
The acquisition, which was planned as part of the three-for-one merger, will see Sandstorm left with 24 million shares and warrants that could be converted into 9.1 million shares. This would give it 7.7% of Equinox on a partially-diluted basis.