It appears that Equinox Gold (TSX: EQX) continues to be interested in being a major shareholder of i-80 Gold Corp (TSX: IAU). The firm this morning announced that it would be exercising certain top-up rights it has with the company to push its ownership back over 25%.
The arrangement will see Equinox invest a further $12.6 million into the company via a private placement. A total of 4.8 million new shares will be issued to Equinox, at a price per share of $2.62.
Prior to the closing of the transaction, Equinox held 56.0 million shares in i-80, representing 24.0% on the outstanding shares. Following the closing of the private financing, the firm will see its ownership jump to 60.8 million shares, or approximately 25.5% of all outstanding shares, while owning 26.2% of the firm on a partially diluted basis.
The top-up provision came into play for the firm following the acquisitions of the Lone Tree and Buffalo Mountain deposits from Nevada Gold Mines, as well as the acquisition of the Ruby Hill mine from Waterton Global Resource Management.
i-80 Gold Corp last traded at $2.59 on the TSX.
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