Transaction to form Equinox Gold

Creating a leading multi-asset gold company
Trek Mining (TSX-V: TREK), NewCastle Gold (TSX: NCA) and Anfield Gold (TSX-V: ANF) have announced a plan of arrangement to combine their businesses, creating a multi-asset gold company with an exceptional platform for growth. The combined company intends to change its name to Equinox Gold Corp. and expects to trade on the TSX-V under the ticker symbol “EQX”. The companies issued a press release and hosted a webcast on October 25, 2017 to discuss the transaction.

Transaction Highlights

  • Near-term and growing gold production: First gold pour from Aurizona targeted for late 2018 with expected average annual production of 136,000 ounces; potential to significantly increase production with subsequent mine development at Castle Mountain
  • Robust project portfolio: Multi-asset gold and copper portfolio including two advanced-stage gold projects in well-established mining jurisdictions
  • Substantial gold resource: Combined Measured and Indicated gold resources of 5.8 million ounces and additional Inferred gold resources of 2.5 million ounces
  • Significant exploration potential: Drilling currently underway to potentially increase resources at both the Aurizona and Castle Mountain properties; plus upside from a portfolio of highly prospective gold and copper properties
  • Strong financial platform: Approximately C$98 million in cash and marketable securities, with plans to realize corporate G&A savings and monetize selected non-core assets. Well funded with a US$85 million credit facility to fully fund the construction of Aurizona, and access for up to US$200 million in funding for future project development and acquisitions, providing significant capacity to develop Castle Mountain and continue to grow the company  
  • Strategic leader and shareholder: Ross Beaty will join as Chairman and invest approximately US$20 million to become a significant shareholder, owning approximately 11% of Equinox Gold after Transaction close
  • Experienced leadership team: Executive team and directors are invested shareholders with significant technical, construction and operations experience
Creating a leading multi-asset gold company

The properties, the people and the plan for success

Creating a leading multi-asset gold company

Led by Ross Beaty as Chairman and Christian Milau as CEO, Equinox Gold will be a well-financed gold mining company with a near-term strategy to become a profitable, multi-asset, low-cost gold producer. Watch Ross Beaty's BNN interview on November 1, 2017, discussing the transaction.  

Equinox Gold will have a multi-million-ounce gold resource base, near-term and growing gold production from two past-producing gold mines in Brazil and California, an impressive growth profile with a pipeline of gold and copper projects in Ecuador, Chile, Mexico and Canada, and an operational gold processing facility in Peru. Both the Aurizona Gold Mine in Brazil and the Castle Mountain Gold Mine in California have the potential to be long-life gold mines in well-established mining jurisdictions, with first gold pour from Aurizona targeted for year-end 2018 and significant production potential from Castle Mountain.

The Company’s earlier-stage projects provide a development pipeline with both jurisdictional and mineral diversity. In addition, the Company is reviewing options to monetize a portfolio of non-core assets, further bolstering the Company’s strong treasury and funding exploration and development at its flagship properties.

Equinox Gold will be led by an experienced executive team that has advanced multiple projects from exploration through construction and into production. The Company’s Board of Directors will include some of the industry’s most respected technical and business leaders, with Ross Beaty as Chairman. The Company’s executive and directors have personally invested in the company and hold approximately 12% of the shares, ensuring their interests are aligned with investors. 

Next steps

Closing of the transaction is subject to customary conditions including court and regulatory approvals and the approval of the securityholders of NewCastle Gold and Anfield Gold. A joint information circular detailing the terms and conditions of the transaction will be filed with regulatory authorities and mailed to securityholders in accordance with applicable securities laws. The special meetings of NewCastle Gold and Anfield Gold are expected to be held in mid-December 2017, with completion of the transaction anticipated before year-end 2017.

Additional information about the proposed transaction is available in the transaction press release. Further information about the asset portfolio is available on Trek’s website and on the websites of NewCastle Gold and Anfield Gold.