Equinox Gold Corp. (TSX: EQX) announced this morning that it has sold its Pilar Gold Mine in Brazil to Pilar Gold Inc, a private issuer whom is eyeing a public listing later this year. The transaction comes as Equinox right-sizes its operations following several recent acquisitions.
The transaction has been made for aggregate consideration of $38.0 million in cash, 9.9% equity interest, and a 1% net smelter returns royalty on Pillar Gold Mine’s production. The first tranche, consisting of a cash payment worth $10.5 million, has been paid by Pillar Gold Inc. The second and third tranches of payment will be $10.0 million payable on or before May 31, 2021 and $17.5 million payable on or before July 31, 2021, respectively.
The company said that this sale is a step towards focusing its portfolio on larger production and development assets. The transaction follows the acquisition of Premier Gold Mines, which was completed just two weeks ago.
The Pillar Gold Mine accounted for approximately 35,000 ounces of gold or 5% of Equinox Gold’s guidance of 600,000 to 665,000 ounces for the fiscal year. Following the sale, Equinox Gold said it will update its guidance in May to reflect this recent transaction and previous acquisitions.
Equinox Gold Corp last traded at $11.25 on the TSX. Pillar Gold Inc is a private company eyeing a public listing this year.
Information for this briefing was found via Sedar and Equinox Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
