Aurizona Gold Project / Equinox Gold

Structure and arrangement of project financing for the construction of the Aurizona Gold Project in Brazil.

US$85m

Transaction Amount

Endeavour advised Equinox Gold on the financing of the US$85 million Aurizona Gold Project in Brazil. Aurizona is Equinox Gold’s first operating mine and is expected to produce on average 136,000 ounces of gold per year over the life of the mine.

Comprehensive role advising the project sponsor including:

  • Detailed review of project documents with focus on specific risks and potential financing issues
  • Preparation of financing plan and cashflow model together in accordance with sponsor needs
  • Marketing of the proposed transaction with diverse range of financiers
  • Comprehensive negotiation of term sheet and loan documentation and assistance in completing all Conditions Precedent
  • Legacy issues of the Aurizona mine caused by previous management team
  • Addressing Equinox’s growth strategy in loan documentation
  • Short time horizon to closing set by the client
  • Intercreditor relations with royalty holders
  • Appointment of experienced Independent Engineer confirming technical and economic viability of the Project
  • Focus on sourcing term sheets from non-traditional finance providers such as private equity funds who can move quickly and provide flexibility in their terms
  • Borrower-driven process creating competitive tensions between financiers
  • Create positive momentum with a small highly organised negotiation team that can respond quickly with support from experienced counsel
  • Leverage relationships to get things done

Key Contact

George Pyper

Director


Paul Stevens

Director