January 16, 2018 – Vancouver, BC – Equinox Gold Corp. (TSX-V: EQX, OTC: LWLCF) (“Equinox Gold” or the “Company”) announces that Pacific Road Resources Funds (“Pacific Road”) has provided notice to the Company of the exercise of its pre-existing non-dilution rights and will acquire an additional 21,000,000 Equinox Gold common shares for aggregate proceeds to the Company of C$19,215,000, subject to TSX Venture Exchange approval. When combined with the 23,824,968 Equinox Gold common shares Pacific Road already owns, Pacific Road will hold an aggregate of 44,824,968 Equinox Gold common shares representing approximately 10.1% of the Company’s outstanding common shares.
Pacific Road’s non-dilution rights are being exercised in connection with the business combination (the “Business Combination”) completed on December 22, 2017 whereby Equinox Gold (formerly Trek Mining Inc.) acquired all issued and outstanding securities of NewCastle Gold Ltd. and Anfield Gold Corp. The purchase price was calculated based on the five-day volume weighted average price of Equinox Gold’s common shares on the day the Business Combination closed. As disclosed in the joint management information circular related to the Business Combination, Pacific Road has certain non-dilution rights pursuant to an investment agreement dated May 7, 2015 whereby as long as Pacific Road holds at least 5% of Equinox Gold’s common shares, Pacific Road has the right to maintain all or a portion of its ownership interest in the Company following any new issuance of Equinox Gold common shares.
Equinox Gold
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