Equinox Gold Corp 6-K, filed Dec 17, 2021
Equinox Gold Corp. (EQX)
About this 6-K
Equinox Gold Corp filed this 6-K on December 17, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANTTO RULE 13a-16 or 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of December, 2021.
Commission File Number 001-39038
| EQUINOX GOLD CORP. |
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| (Translation of registrant’s name into English) |
| 700 West PenderStreet, Suite 1501<br><br> <br>Vancouver, BritishColumbia<br><br> <br>V6C 1G8 |
| --- |
| (Address of principal executive office) |
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F
| Form 20-F | o | Form<br> 40-F ☒ |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
| Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders. |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
| Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| EQUINOX GOLD CORP. | ||
|---|---|---|
| Date: <br> December 17, 2021 | /s/<br> Rhylin Bailie | |
| Name: | Rhylin Bailie | |
| Title: | VP Investor Relations |
INDEX TO EXHIBITS
| 99.1 | News Release<br> dated December 17, 2021 - Equinox Gold Announces Agreement to Sell its Mercedes Gold Mine |
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EXHIBIT 99.1

Equinox Gold Announces Agreement to Sell its Mercedes Gold Mine
All dollar amounts are expressedin US$
VANCOUVER, BC, Dec. 17, 2021 /CNW/ - Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) ("Equinox Gold" or the "Company") is pleased to announce that it has entered into a definitive agreement to sell its Mercedes Gold-Silver Mine in Mexico ("Mercedes") to Bear Creek Mining Corporation (TSXV: BCM) ("Bear Creek") (the "Transaction") for aggregate consideration of:
| • | $100<br> million in cash, payable as follows: |
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| • | $75<br> million on closing of the Transaction; and |
| --- | --- |
| • | $25<br> million payable within six months of closing of the Transaction. |
| --- | --- |
| • | 24,730,000<br> common shares of Bear Creek valued at approximately $25 million based on current trading<br> prices; and a |
| --- | --- |
| • | 2%<br> net smelter return payable on production from Mercedes. |
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Christian Milau, CEO of Equinox Gold, commented: "We acquired Mercedes in April this year as part of our acquisition of Premier Gold Mines and the large-scale Greenstone Gold Project. Mercedes is non-core to Equinox Gold, representing 5% of our 2021 production guidance and 2% of our resources. The sale of Mercedes strengthens our balance sheet with $100 million as we focus on growth through expansion and development of our larger gold projects, including Greenstone. Equinox Gold will also become a significant shareholder in Bear Creek, continuing to participate in the success of Mercedes and in the future development of Bear Creek's Corani silver-lead-zinc deposit, one of the largest, fully-permitted silver deposits in the world."
The Transaction is subject to certain regulatory approvals including approval of the Mexican Comisión Federal de Competencia Económica and other customary closing conditions. The Transaction is expected to close in the first quarter of 2022.
About Equinox Gold
Equinox Gold is a growth-focused Canadian mining company operating entirely in the Americas, with seven operating gold mines (including Mercedes) and a clear path to achieving more than one million ounces of annual gold production from a pipeline of development and expansion projects. Equinox Gold's common shares are listed on the TSX and the NYSE American under the trading symbol EQX. Further information about Equinox Gold's portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at ir@equinoxgold.com.
Cautionary Notes and Forward-looking Statements
This news release contains certain forward-lookinginformation and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financialinformation. Forward-looking statements and forward-looking information in this news release relates to, among other things: theconsummation and timing of the Transaction; the satisfaction of the conditions precedent to the Transaction; Equinox Gold and Bear Creek'sabilities to obtain all necessary permits, licenses and regulatory approvals in a timely manner or at all, including the approval of theMexican Comisión Federal de Competencia Económica; the anticipated receipt of future cash payments to complete the MercedesGold Mine sale and from the net smelter return; the Company's equity ownership in Bear Creek; the strategic vision for the Company andexpectations regarding exploration potential, production capabilities and future financial or operating performance post-Transaction,including expectations for the Company's investment in Bear Creek; the strategic vision for Bear Creek and its ability to achieve itsgrowth objectives, including those objectives relating to the Corani silver-lead-zinc deposit; and the Company's ability to successfullyadvance its growth and development projects. Forward-looking statements or information generally identified by the use of the words "clearpath", "strengthen", "future" and similar expressions and phrases or statements that certain actions, eventsor results "could", "would" or "should", or the negative connotation of such terms, are intended to identifyforward-looking statements and information. Although the Company believes that the expectations reflected in such forward-looking statementsand information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurancethat such expectations will prove to be correct. The Company has based these forward-looking statements and information on the Company'scurrent expectations and projections about future events and these assumptions include: prices for gold remaining as estimated;currency exchange rates remaining as estimated; the successful transition in the operation of the Mercedes Gold Mine; the expected operationalbenefits to the Company post-Transaction; the Company's ability to achieve its production, cost and development expectations for its operationsand projects; tonnage of ore to be mined and processed; ore grades and recoveries; availability of funds for the Company's projects andfuture cash requirements; capital, decommissioning and reclamation estimates; Mineral Reserve and Mineral Resource estimates and the assumptionson which they are based; prices for energy inputs, labour, materials, supplies and services; no labour-related disruptions and no unplanneddelays or interruptions in scheduled construction, development and production, including by blockade; all necessary permits, licensesand regulatory approvals are received in a timely manner; the Company's ability to comply with environmental, health and safety laws;the strategic vision and expectations for Bear Creek ; and the ability of Bear Creek to achieve its production, cost and development expectationsfor the Mercedes Gold Mine. While the Company considers these assumptions to be reasonable based on information currently available, theymay prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on the forward-looking statements or informationcontained in this news release.
The Company cautions that forward-looking statementsand information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differmaterially from those expressed or implied by such forward-looking statements and information contained in this news release and the Companyhas made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuationsin gold prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets;operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents,equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); inadequate insurance,or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with, and claims by, local communitiesand indigenous populations; the Company's ability to obtain all necessary permits, licenses and regulatory approvals in a timely manneror at all; changes in laws, regulations and government practices, including environmental, export and import laws and regulations; legalrestrictions relating to mining including those imposed in connection with COVID-19; risks relating to expropriation; increased competitionin the mining industry; and those factors identified in the Company's MD&A dated March 19, 2021 and its Annual Information Form datedMarch 24, 2021, both for the year ended December 31, 2020, and in the Company's MD&A dated November 3, 2021 for the three andsix months ended September 30, 2021, all of which are available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar. Forward-lookingstatements and information are designed to help readers understand management's views as of that time with respect to future events andspeak only as of the date they are made. Except as required by applicable law, the Company assumes no obligation to publicly announcethe results of any change to any forward-looking statement or information contained or incorporated by reference to reflect actual results,future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements and information.If the Company updates any one or more forward-looking statements, no inference should be drawn that the Company will make additionalupdates with respect to those or other forward-looking statements. All forward-looking statements and information contained in this newsrelease are expressly qualified in their entirety by this cautionary statement.
View original content:https://www.prnewswire.com/news-releases/equinox-gold-announces-agreement-to-sell-its-mercedes-gold-mine-301447133.html
SOURCE Equinox Gold Corp.
View original content: http://www.newswire.ca/en/releases/archive/December2021/17/c6669.html
%CIK: 0001756607
For further information: Equinox Gold Contacts, Christian Milau, Chief Executive Officer, Rhylin Bailie, Vice President, Investor Relations, Tel: +1 604-558-0560, Email: ir@equinoxgold.com
CO: Equinox Gold Corp.
CNW 07:00e 17-DEC-21