Equinox Gold agrees to sell Brazil portfolio to CMOC for $1.01bn

Canadian mining institution Equinox Gold has agreed to divest its Brazil portfolio to a CMOC Group subsidiary for a full information of $1.01bn (C$1.39bn), to absorption connected North American growth.

The merchantability includes its 100% interests successful the Aurizona Mine, RDM Mine and Bahia Complex.

The presumption of the transaction supply Equinox Gold with $900m successful upfront currency upon closing, taxable to customary adjustments.

An further production-linked contingent currency outgo of up to $115m volition beryllium payable 1 twelvemonth station closing if specified output thresholds are achieved.

The transaction is expected to adjacent successful the archetypal 4th of 2026, pending regulatory approvals and modular conditions, and is not contingent upon immoderate financing conditions.

Post sale, Equinox Gold’s accumulation level volition beryllium comprised of the Valentine and Greenstone mines successful Canada, the Mesquite excavation successful California, and the El Limón and Libertad mines successful Nicaragua.

Equinox Gold aims to summation its output to betwixt 700,000oz and 800,000oz of golden successful 2026 arsenic the Valentine and Greenstone mines ramp to nameplate capacity, and operational show remains dependable crossed the portfolio.

The institution flagged further near-term integrated maturation from the Valentine Expansion, Castle Mountain signifier 2 and a revised improvement program astatine Los Filos successful Mexico.

Equinox Gold plans to contented ceremonial 2026 accumulation and outgo guidance aboriginal adjacent year.

Equinox Gold CEO Darren Hall said: “The merchantability of our Brazil operations is simply a pivotal measurement to presumption Equinox Gold arsenic a North American-focused golden shaper underpinned by robust currency travel and a tier-one maturation profile.

“The proceeds volition alteration our equilibrium expanse and instantly fortify our fiscal presumption by afloat repaying our $500m word indebtedness and $300m Sprott indebtedness and reducing our revolving recognition facility. This volition greatly trim involvement disbursal and heighten per-share currency flow. The institution volition person enhanced flexibility to self-fund integrated maturation and see superior instrumentality initiatives wrong a disciplined superior allocation framework.”

After completing its merger with Calibre Mining, Equinox Gold conducted a thorough reappraisal of its expanded portfolio and received aggregate inbound queries.

The transaction volition beryllium effected done the merchantability of issued and outstanding shares of definite non-Brazilian, wholly owned Equinox Gold subsidiaries that indirectly clasp the Brazil operations.

Hall added: “Monetising our Brazil operations simplifies the portfolio and enables the institution to deploy superior toward higher-return, lower-risk, organic-growth opportunities successful Canada and the US. By concentrating connected our long-life assets, including Greenstone successful Ontario, Valentine successful Newfoundland and Labrador, and Castle Mountain successful California, we presumption the institution to present stronger margins and sustainable returns.