Equinox comments on Minmetals Resources announcement

TORONTO, April 7 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol: "EQN") ("Equinox" or the "Company") today commented on the announcement on April 3, 2011 by Minmetals Resources Limited ("MMR"), of their intention to make an all cash offer of C$7.00 per share for Equinox.

Craig Williams, President and Chief Executive Officer of Equinox, stated that: "MMR's announcement and its timing is clearly opportunistic and seeks to frustrate Equinox's offer for Lundin Mining Corporation which we believe can add significant value for shareholders. MMR's announcement of its intention to offer C$7.00 per share represents a nominal premium of approximately 9% to Equinox's 20-trading day volume weighted average share price on the TSX prior to its announcement of the Lundin offer. Such a low premium is a fraction of premiums paid in recent acquisitions of base metal mining companies."

"Equinox has excellent assets and the Board has every confidence in the ability of our people to deliver superior value for our shareholders. We consider that the lowball price announced by MMR significantly understates our value and disregards the potential of this Company, especially in light of the continuing strength in copper prices", added Peter Tomsett, Chairman.

Although MMR's intention has been announced publicly, no formal offer has been made nor offer documents received and according to public comments by MMR, none are expected for several weeks. Furthermore, MMR has indicated that any proposed offer will require approval by MMR shareholders. MMR has also indicated that its major shareholder, China Minmetals Corporation will support a transaction, but that China Minmetals Corporation's ability to vote in favour will require National Development and Reform Commission approval, which has not yet been received. The MMR shareholders' meeting is not expected to occur until sometime in June.

Equinox can only respond to a formal offer that may be made by MMR upon receipt of such offer.

As previously announced, the Equinox shareholders' meeting called to approve the share issuance in connection with the offer for Lundin Mining Corporation ("Lundin"), originally scheduled to be held on Monday, April 11, 2011, has been rescheduled for Tuesday, April 26, 2011.  Equinox has also extended the expiry time for its offer to acquire all of the issued and outstanding common shares of Lundin to 6:00 p.m. (Toronto time) on April 29, 2011.

About Equinox

Equinox Minerals Limited is an international mining company dual-listed on the Canadian (Toronto) and Australian stock exchanges.

The Company is currently focused on operating its 100% owned large scale Lumwana Copper Mine in Zambia and construction of the Jabal Sayid Copper-Gold project in the Kingdom of Saudi Arabia.

Equinox acquired the Lumwana project in 1999 and following nearly 10 years of feasibility, financing and construction, commissioned the mine, plant and infrastructure in December 2008. Situated 220 kilometres northwest of the Zambian Copperbelt, Lumwana is now a major copper mine which has established Equinox as one of the world's top 20 copper producing companies.

Equinox recently acquired the Jabal Sayid project as the project entered the construction phase with first production scheduled for 2012. Jabal Sayid is located within the Arabian Shield minerals province, 350 kilometres north-east of the Red Sea port city of Jeddah, the commercial capital of Saudi Arabia, and 120 kilometres south-east of Medina.

For information on Equinox and technical details on the Lumwana and Jabal Sayid projects please refer to the company website at www.equinoxminerals.com

Cautionary Notes

Forward-Looking Statements
Certain information contained or incorporated by reference in this press release include forward-looking statements, which may include, but is not limited to, statements with respect to the future financial or operating performances of Equinox, its subsidiaries and their respective projects, the timing and amount of estimated future production, estimated costs of future production, capital, operating and exploration expenditures, costs and timing of the expansion of the Lumwana copper mine in Zambia and development of the Jabal Sayid copper-gold project in the Kingdom of Saudi Arabia, the future price copper and uranium, the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the costs of Equinox's hedging policy, costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements can often, but not always, be identified by the use of words such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words; or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking statements is to provide the reader with information about management's expectations and plans.  Readers are cautioned that forward-looking statements are not guarantees of future performance.

Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Equinox as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions of the Company contained in this news release include, but are not limited to, anticipated financial or operating performances of Equinox, its subsidiaries and their respective projects; future prices of copper and uranium; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; estimated costs of future production; the grade, quality and content of the concentrate produced; the sale of production and the performance of offtakers; capital, operating and exploration expenditures; costs and timing of development and expansion of Lumwana and Jabal Sayid; the costs of Equinox's hedging policy; the costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; that Equinox will acquire 100% interest in Lundin through the Offer; management's assessment of the successful integration of the combined companies upon completion of the Offer; management's expectations of growth and production upon completion of the Offer; the viability of Lundin's assets and projects on a basis consistent with the management's current expectations; there being no significant risks relating to the Company's or Lundin's mining operations, including political risks and instability and risks related to international operations; and limitations of insurance coverage. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Equinox and/or its subsidiaries to differ materially from those expressed or implied in the forward-looking statements, including the risk that the Offer will not be completed for any reason. Certain of these risks and uncertainties are described in more detail in the section entitled "Risks Factors" in the Company's Annual Information Form dated March 14, 2011 and in the Company's most recently filed Management's Discussion and Analysis, to which readers are referred and which are incorporated by reference in this news release. The Company's Annual Information Form and its most recently filed Management's Discussion and Analysis are available on SEDAR at www.sedar.com and on the Company's website at www.equinoxminerals.com.

Although Equinox has attempted to identify statements containing important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein are made as of the date of this document based on the opinions and estimates of management on the date statements containing such forward looking information are made, and Equinox disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information.

The information in this announcement concerning Lundin and Lundin's assets and projects is based on publicly available information and has not been independently verified by Equinox.

SOURCE Equinox Minerals Limited

For further information:

Investors and analysts
Craig R Williams
President and Chief Executive

Carl Hallion
VP Business Development

Len Eldridge
Head of Investor Relations

Canada:  +1 416 865 3393
Australia: +61 8 9322 3318
Email: equinox@equinoxminerals.com

The Information Agent:
Kingsdale Shareholder Services Inc.
North America Phone: 1-888-518-1558
Outside North America call collect +1 416 867 2272
Email: contactus@kingsdaleshareholder.com
Media - Australia
Michael Vaughan / Andrew Stokes
Phone +61 (0) 2 8298 6100
Email: michael.vaughan@fd.com

Media - North America
John Lute
Lute and Company
Phone: +1 416 929 5883
Email: jlute@luteco.com

Media - Zambia
Nathan Chishimba
Lumwana Mining Company
Phone: +260 211 257 643
Email: nathan.chishimba@lumwanamine.com

Profil de l'entreprise

Equinox Minerals Limited

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