Equinox Gold Sells Brazilian Portfolio For Record 139 Billion

Equinox Gold, a Canadian mining company, has agreed to sell its Brazilian portfolio to a subsidiary of the CMOC Group for a total consideration of $1.01 billion Canadian dollars (C$1.39 billion). The sale includes Equinox Gold’s 100% interests in three mines: Aurizona, RDM, and Bahia Complex.

The terms of the transaction provide the company with $900 million in upfront cash upon closing, subject to customary adjustments. In addition, an additional production-linked contingent cash payment of up to $115 million will be payable one year post-closing if specified output thresholds are achieved. The deal is expected to close in the first quarter of 2026, pending regulatory approvals and standard conditions.

Equinox Gold’s production platform will be comprised of the Valentine and Greenstone mines in Canada, the Mesquite mine in California, and the El Limón and Libertad mines in Nicaragua. The company aims to increase its output to between 700,000 ounces and 800,000 ounces of gold in 2026 as the Valentine and Greenstone mines ramp up to nameplate capacity.

Equinox Gold has also flagged additional near-term organic growth from the Valentine Expansion, Castle Mountain phase two, and a revised development plan at Los Filos in Mexico. The company’s CEO, Darren Hall, stated that “the sale of our Brazilian operations is a pivotal step to position Equinox Gold as a North American-focused gold producer underpinned by robust cash flow and a tier-one growth profile.”

The proceeds from the sale will transform the company’s balance sheet and immediately strengthen its financial position. The company plans to fully repay its $500 million term loan and $300 million Sprott loan, reducing its revolving credit facility. This move is expected to significantly reduce interest expense and enhance per-share cash flow.

Equinox Gold conducted a thorough review of its expanded portfolio after completing its merger with Calibre Mining. Multiple inbound queries from potential buyers led to the sale of its Brazilian operations. The transaction will be effected through the sale of issued and outstanding shares of certain non-Brazilian, wholly owned Equinox Gold subsidiaries that indirectly hold the Brazil operations.

This structure ensures a smooth transfer of ownership while maintaining the company’s control over its North American assets. By concentrating on its long-life assets in Canada and the US, Equinox Gold is positioning itself to deliver stronger margins and sustainable returns for its shareholders.

Equinox Gold’s strategy shift is a result of its commitment to focusing on high-return, lower-risk opportunities in North America. Prioritizing its core assets and streamlining its portfolio, the company aims to drive long-term per-share value for its shareholders. The deal marks an important milestone in Equinox Gold’s evolution as a North American-focused gold producer.

With its solid cash flow and tier-one growth profile, Equinox Gold is well-positioned to achieve its growth targets and drive long-term per-share value for its shareholders. The company plans to issue formal 2026 production and cost guidance early next year.

The Valentine Gold Mine in Newfoundland and Labrador, Canada, has already made significant progress, with the inaugural gold pour announced in September. This milestone marks an important step towards achieving Equinox Gold’s growth targets.

Equinox Gold is well-positioned to navigate the challenges of the mining industry while delivering strong returns for its investors. The deal has been facilitated by BMO Capital Markets as financial advisor, Blake, Cassels & Graydon and Veirano Advogados acting as Equinox Gold’s legal counsel in Canada and Brazil, respectively.

Canaccord Genuity is advising CMOC Group on the financial side, while McCarthy Tétrault and Mattos Filho are providing legal counsel to CMOC Group. As the mining industry continues to evolve, companies like Equinox Gold are adopting a more focused approach to growth, prioritizing high-return opportunities in key regions.

With its commitment to North American growth, Equinox Gold is well-positioned to achieve its strategic objectives and drive long-term value creation for its shareholders. The sale of its Brazilian operations represents a significant step forward for the company as it targets enhanced profitability and sustainable returns.