Trek Mining, NewCastle and Anfield Gold Merge to Create Equinox Gold

Valuations & Fairness Opinions
Transaction Details

Click here to view the original press release

Fort Capital Partners is pleased to announce that Trek Mining Inc. (TSX-V: TREK), NewCastle Gold Ltd. (TSX: NCA) and Anfield Gold Corp. (TSX-V: ANF) have entered into a definitive agreement to combine their businesses. The combined entity will operate under the name Equinox Gold Corp. and trade on the TSX Venture Exchange under the ticker symbol “EQX”.

Led by Ross Beaty as Chairman, and with an executive team led by Christian Milau as CEO and Greg Smith as President, Equinox Gold will be a well-financed, growth-focused gold mining company with a near-term strategy to become a profitable, multi-asset, low-cost gold producer. Shareholders of Trek Mining and NewCastle Gold will each own 44% of Equinox Gold, with Anfield Gold shareholders owning a 12% interest in the merged entity.

Equinox Gold will own two flagship assets – the feasibility-stage Aurizona gold project in Brazil and the Castle Mountain gold project in California. Early works construction has commenced at Aurizona, with a first gold pour planned for late 2018. At Castle Mountain, a pre-feasibility study is underway to assess a two-phase approach to resuming production before the end of 2020. Upon completion of the transaction, the construction of Aurizona will be fully funded through current cash and marketable securities (C$98 million) and a US$85 million credit facility.

Equinox Gold will also own a portfolio of other assets including an 83% interest in the Koricancha Mill in Peru, the Coringa gold project in Brazil, the Elk Gold project in Canada, a 60% interest in the La Verde copper project in Mexico, and two highly prospective copper exploration properties in Ecuador and Chile. Anfield currently owns the Coringa Gold deposit in Brazil and a financial receivable from the sale of its nickel deposit in Guetemala. Anfield is divesting both assets, and Equinox Gold will apply all sale proceeds to the advancement of its flagship assets.

Fort Capital Partners provided a fairness opinion to the Board of Directors of Anfield Gold in connection with the transaction.