UPDATE 1-Minmetals plans $864 mln stock sale for Equinox bid*...

UPDATE 1-Minmetals plans $864 mln stock sale for Equinox bid

* Minmetals plans sale of up to 1.2 bln new shares

* Price range set at HK$5.20-HK$5.60

* Stock offering to help fund Equinox bid (Adds details of offering, Equinox bid)

HONG KONG, April 18 (Reuters) - China's Minmetals Resources Ltd could raise up to HK6.72 billion ($864.4 million) with a stock sale to fund its proposed bid for Equinox Minerals Ltd , according to a term sheet of the offering seen by Reuters on Monday.

The company plans to sell up to 1.2 billion new shares each at a price range of HK$5.20 and HK$5.60, a discount as large as 11.7 percent from its last traded price on Monday. The stock tumbled 5.5 percent before trading was halted in early afternoon ahead of the announcement of the share placement.

Minmetals, China's biggest metals trading firm, offered $6.5 billion on April 4 to buy Equinox, chasing the target company's copper assets in Zambia and Saudi Arabia. [ID:nLDE73313I]

Three Chinese banks agreed to provide $4.6 billion to fund the takeover, with the remainder coming from Minmetals' cash reserves and from equity issuance.