07:33 AM EST, 02/26/2019 (MT Newswires) -- Equinox Gold (EQX.V) said overnight Monday that Mubadala Investment Company has agreed to buy US$130.0 million in convertible notes from the company. The company said it will use the investment to refinance a portion of existing corporate and project debt, toward construction of Phase 1 at Castle Mountain and for general and working capital purposes.

According to a statement, the investment in five-year convertible notes has a 5.0% interest rate convertible at US$1.05 ($1.38) per share, a 25% premium to the 10-day volume weighted average share price. It "significantly" reduces the company's borrowing costs and increases near-term financial flexibility by deferring principal payments up to five years. And it establishes Mubadala, which actively manages its diversified portfolio to deliver sustainable returns to its shareholder, the Government of Abu Dhabi, as a cornerstone and long-term financial partner to Equinox Gold as the company executes on its growth strategy.

CEO Christian Milau said: "Mubadala's investment underscores the value and upside of Equinox Gold's existing asset base and significantly enhances our near-term financial capacity as we prepare for Phase 1 construction at the Castle Mountain project."

Shares on Monday gained less than 1.0% to $1.13 apiece in a 52-week range of $0.85 - 1.23.

Price: 1.1300, Change: +0.0100, Percent Change: +0.89