Equinox Gold (TSX: EQX) has trimmed its stake in Versamet Royalties (TSX: VMET) rather substantially. The company has sold 8,713,000 common shares of the royalty company for gross proceeds of C$130 million.
The gold producer arranged the sale as a block trade through National Bank Financial Inc. Before the disposition, Equinox held 11,617,915 Versamet shares, or roughly 10.7% of the company on an undiluted basis.
That position now falls to 2,904,915 shares, about 2.7%. Equinox said it holds the remaining stake for investment purposes and may add to or further reduce it depending on circumstances, subject to certain escrow restrictions.
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With Equinox no longer being a reporting shareholder for the company, Versamet’s right of first offer on any royalty or stream held by Equinox terminates immediately. The investor rights agreement between the two companies will also lapse once Equinox has stayed under 10% ownership for 30 consecutive days.
The loss of a major shareholder for Versamet meanwhile has resulted in the equity sinking as much as 15% in morning trading.
Equinox Gold last traded at $14.51 on the TSX.
