Equinox Raises A$3M at $0.095 to Fund Key Resource Milestones

Strategic Capital Raise to Propel Project Development

Equinox Resources Limited (ASX: EQN) has announced a firm commitment to raise A$3 million through a two-tranche placement priced at A$0.095 per share. This capital raise is designed to underpin near-term milestones across the company’s diversified portfolio, which spans titanium, antimony, and iron ore projects in Brazil, Canada, and Western Australia.

The placement includes an attractive incentive for investors: one free attaching option for every two shares subscribed, exercisable at A$0.145 with a three-year expiry. Equinox plans to list these options on the ASX, providing additional liquidity and potential upside for shareholders.

Targeted Use of Funds Across Key Assets

The funds will be strategically deployed to advance several critical initiatives. At the Mata da Corda Titanium Project in Brazil, the company aims to complete a maiden Mineral Resource Estimate and conduct metallurgical testwork, essential steps toward defining the project's economic potential.

In British Columbia, Canada, drilling and bulk sampling activities will be accelerated at the Alturas Antimony Project, a commodity gaining renewed interest amid global supply concerns. Meanwhile, legal and heritage engagement costs at the Hamersley Iron Ore Project in Western Australia will be addressed, reflecting the company’s commitment to regulatory compliance and community relations.

General working capital and placement-related expenses will also be covered, ensuring operational flexibility as Equinox executes its growth strategy.

Placement Structure and Shareholder Considerations

The placement will be completed in two tranches. Tranche 1, comprising approximately 30.96 million shares, will be issued under existing placement capacities. Tranche 2, involving a smaller allotment of shares and all attaching options, is contingent on shareholder approval at an upcoming Extraordinary General Meeting scheduled for mid-June.

CPS Capital Group Pty Ltd served as lead manager and corporate advisor, earning a 6% fee on the gross amount raised and a potential 6 million options, also subject to shareholder approval. This arrangement aligns the lead manager’s interests with the company’s future performance.

Investor Confidence and Market Implications

Managing Director Zac Komur expressed satisfaction with the strong demand for the placement, interpreting it as a vote of confidence in Equinox’s strategic direction and asset quality. The company’s disciplined capital management and focus on delivering tangible milestones resonate with investors seeking exposure to tier-one jurisdictions and critical minerals.

However, the placement price reflects a modest discount to recent trading levels, a common feature in capital raises but one that investors will monitor closely. The success of upcoming project updates and shareholder approvals will be pivotal in sustaining momentum.