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.
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