Equinox Gold announced that it sold an aggregate of 8,713,000 common shares of Versamet Royalties through a block trade with National Bank Financial. The sale generated aggregate gross proceeds of C$130 million for Equinox Gold. The company said it holds its Versamet shares for investment purposes.
Before the transaction, Equinox Gold beneficially owned, controlled, and directed 11,617,915 Versamet shares. That represented approximately 10.7% of Versamet’s outstanding shares on an undiluted basis.
Following the sale, Equinox Gold will beneficially own, control, and direct 2,904,915 Versamet shares. This represents approximately 2.7% of Versamet’s outstanding shares on an undiluted basis.
Equinox Gold said it may acquire additional securities, sell some or all of its remaining or additional securities subject to certain escrow restrictions, or continue holding Versamet shares depending on future circumstances.
The sale also affects agreements between Equinox Gold and Versamet. Following the transaction, Versamet’s right of first offer to acquire any royalty or stream held by Equinox Gold will be terminated.
The investor rights agreement between Equinox Gold and Versamet will also automatically terminate once Equinox Gold’s beneficial ownership in Versamet remains below 10% for a continuous period of at least 30 days.
Equinox Gold said the announcement was issued under National Instrument 62-103, which covers the early warning system and related takeover bid and insider reporting requirements. An early warning report with additional information will be filed under Versamet’s profile on SEDAR+.
Because Equinox Gold now beneficially owns less than 10% of Versamet’s outstanding shares, the company said it is no longer subject to ongoing early warning or insider reporting requirements related to its ownership of Versamet securities.
