Newcore cuts best gold grades yet at Enchi project in Ghana
One hole cut 1 metres at 204 g/t from 59 metres depth, along with 2 metres of 1.46 g/t.
Canada’s Yamana Gold (TSE:YRI) (NYSE:AUY) announced on Monday it would sell shares and warrants in smaller producer Equinox Gold for C$201 million (about $144m).
The Toronto-based gold miner said it planned to sell 12 million units, at C$10 each, with the help of Stifel GMP and Cormark Securities.
Each unit consists of one common share of Equinox Gold (NYSEMKT:EQX) owned by Yamana and one-half of a purchase warrant of Yamana.
Stifel and Cormark have committed to purchase from Yamana any unsold units for C$10 each on closing, subject to customary conditions for “bought deal” financings.
Currently Yamana holds 19.2m Equinox shares, or an 8.9% stake, and warrants to acquire 8.3m shares, or 3.8% of outstanding shares
Prior to the sale, Yamana held 19.2 million Equinox shares, or an 8.9% stake, and warrants to acquire 8.3 million Equinox shares, or 3.8% of outstanding shares.
The announcement comes a month after the mid-tier gold and silver miner revealed that measures to stop the spread of the novel coronavirus were having a negative impact on production.
In March, the government of Argentina ordered the shut down all non-essential mining activities, a blow to Yamana as it had started to ramp down operations at the Cerro Moro mine.
A few days later, the country declared mining an essential business and the company was able to restart the mine, located in the Santa Cruz province.
Yamana has also been hit by the Canadian province of Quebec’s orders to shut down another lucrative operation, the Canadian Malartic mine, which it owns as part of a 50/50 joint venture (JV) with Agnico Eagle Mines.
The open-pit mine, one of Canada’s largest, is expected to remain closed until May 4.
