Currently viewing Global edition

Equinox to spin out copper assets

Six months on from creating Equinox Gold (TSXV: EQZ) out of a three-way merger, the company is planning to spin-out its copper assets to provide each company with a sharper focus and create shareholder value “on two fronts”.
Equinox to spin out copper assets Equinox to spin out copper assets Equinox to spin out copper assets Equinox to spin out copper assets Equinox to spin out copper assets

Solaris to get projects including Warintza

Staff reporter

Equinox plans to transfer all its copper assets into an initially unlisted company called Solaris Copper.

Under the proposal being put to shareholders next month, 60% of Solaris shares would be distributed to Equinox shareholders and Equinox would hold the remaining 40%.

The Ross Beaty-led Equinox formed in December following the merger of Trek Mining, NewCastle Gold and Anfield Gold.

It will remain focused on advancing its Aurizona and Castle Mountain gold mines into production.

Solaris would hold 100% of the Warintza copper-molybdenum project in Ecuador that has an established resource, 100% of the early stage Ricardo copper project in Chile, and a 60% interest in the La Verde copper-silver-gold joint venture with Teck Resources in Mexico that is at preliminary assessment stage.

Solaris had also negotiated earn-ins to two early-stage copper projects in Peru and would evaluate additional acquisitions, Equinox said.

"Creating a standalone copper-focused company should give these projects the visibility and attention they deserve," Beaty said.

Equinox president and director Greg Smith and business development vice president Kylie Dickson will also take on the roles of Solaris CEO and CFO respectively.

Equinox CEO Christian Milau said the spin-out would create value for shareholders on two fronts, with Solaris providing exposure to rising copper prices and Equinox offering "substantial leverage to gold" as its projects advanced to production.

Equinox had about C$65 million (US$49 million) in cash and equivalents at the end of March.

Its shares, which peaked at $1.39 in mid-January, closed up 1c on Friday to $1.04, capitalising it at $440.2 million.