Equinox Minerals (EQN-T, EQN-A) has entered into a $175-million bought-deal financing agreement to fund the development of its Lumwana copper project in Zambia.
The company also plans to do a feasibility study on the treatment of Lumwana uranium ore and fund ongoing exploration for both copper and uranium in Zambia.
A syndicate of underwriters co-led by Sprott Securities and CIBC World Markets will buy 87.5 million units of Equinox at $2 per unit, with each unit consisting of one share and 25% of a warrant. Warrants will be exercisable at $2.30. The underwriters also have the option of buying an additional $26.25 million in units.
Starting in the second quarter of 2008, the $407.6-million project will produce an average of 169,000 tonnes of copper per year for the first 6 years of its 37-year mine life.
In December 2006, Equinox signed a US$583.8-million bank debt facility for Lumwana.
Equinoxs 100%-owned subsidiary Lumwana Mining and Chambishi Copper, which is a joint venture between China Nonferrous Metal Mining and Yunnan Copper Industry, have signed a concentrate sale and purchase agreement for 55% of the copper concentrates to be produced by the Lumwana mine during the first 5 years of production.
Be the first to comment on "Uranium feasibility study for Equinox copper project"