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Mubadala’s unit acquires $130m notes of Equinox Gold

Mubadala’s unit acquires $130m notes of Equinox Gold
The 5-year term notes bear interest at 5% on an annual basis

Abu Dhabi – Mubasher: MDC Industry Holding Company, a wholly-owned subsidiary of Mubadala Investment Company, has completed a subscription for $130 million worth of convertible notes issued by Equinox Gold Corp. through a private placement.

The five-year term notes bear interest at 5% on an annual basis that will be paid quarterly in arrears, according to a recent press release.

The notes are convertible in whole or in part at MDC Industry's option into common shares in the capital of Equinox Gold, a well-financed and multi-asset mining company, at a price of $1.05 per each common share.

Following the full conversion of the Notes, Mubadala’s subsidiary would acquire approximately 123.81 million common shares, representing nearly 18.3% of total common shares that would be issued and outstanding upon the conversion of the notes which were acquired for investment purposes.

“MDCI did not own or control, directly or indirectly, any securities of Equinox Gold immediately prior to the closing of the private placement,” the press release said.

The UAE company intends to nominate Mohamed Alsuwaidi for appointment to Equinox Gold’s board to fill the vacancy that will be found based on the size of the board of directors will be increased to eight members immediately, following the annual shareholders meeting of Equinox Gold set on 1 May 2019.

This is pursuant to an investor rights agreement on 11 April 2019 between Mubadala’s subsidiary and Equinox Gold in connection with the private placement.