Equinox Gold To Offload Mercedes Mine For $125 Million

Equinox Gold (TSX: EQX) is evidently looking to unload certain assets. The firm this morning reported that it will be selling its Mercedes Gold-Silver Mine, which is located in Mexico for consideration consisting of both cash and shares.

The transaction will see the company sell the asset to Bear Creek Mining (TSXV: BCM) for a total of $100 million in cash, as well as 24.7 million common shares pegged at $25.0 million, and a 2% net smelter return. The mine was viewed as non-core asset by Equinox, thus enabling the company to add further liquidity to its balance sheet.

The mine was acquired last year as part of the firms purchase of Premier Gold Mines. That transaction was largely believed to be conducted for Premier’s Hard Rock asset in Ontario, with the production at Mercedes being rather insignificant for the company. The mine amounts to 5% of the firms 2021 production guidance and just 2% of the firms overall resources.

The purchase is currently slated to close in Q1 2022.

Equinox Gold last traded at $8.31 on the TSX.


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.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Equinox Gold Drops US$995 Million To Acquire Final 40% Of Greenstone Mine

Equinox Gold (TSX: EQX) is set to pay big dollars to obtain whole ownership of...

Wednesday, April 24, 2024, 08:59:27 AM

Equinox Gold Sees Measured & Indicated Resource Of 1.4 Million Gold Ounces At Mesquite Mine

Equinox Gold Corp. (TSX: EQX) shared today the updated mineral reserve and mineral resource estimate...

Wednesday, September 8, 2021, 09:45:00 AM

Bear Creek Mining Enters Royalty Agreement, Convertible Debt Deal To Fund Mercedes Mine Purchase

It appears that Bear Creek Mining (TSXV: BCM) is nearly giving away the farm in...

Friday, December 17, 2021, 08:53:29 AM

Equinox Ups Its Offer For Calibre: Investors Said No!

All right guys, we’ll admit it. We messed up. Over the weekend we heard rumblings...

Sunday, April 27, 2025, 03:33:00 PM

Equinox Gold Reports US$314 Million After-Tax NPV For Aurizona Gold Mine

Equinox Gold Corp. (TSX: EQX) shared today the results of its pre-feasibility study for an...

Monday, September 20, 2021, 10:34:00 AM