Equinox Gold (TSX: EQX) continues to right-size its operation following the merger with Calibre Mining earlier this year. The company has again announced plans to sell off certain non-core assets, with the latest asset package to be sold off consisting of their Brazil operations.
The latest transaction will see the sale of the Aurizona Mine, RDM Mine and Bahia Complex, collectively referred to as the Brazil operations, to a subsidiary of the CMOC Group. Total consideration under the deal is valued at $1.015 billion, with that consideration consisting of an upfront cash payment of $900 million upon closing and a contingent payment of up to $115 million linked to production.
That contingent payment is payable on the one-year anniversary of the deal closing if production equals or exceeds 280,000 ounces from the assets on a combined basis. If production is between 200,000 to 280,000 ounces, the contingent payment will equate to 12.5% of revenue from production.
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“Monetizing our Brazil Operations simplifies the portfolio and enables the Company to deploy capital toward higher-return, lower-risk, organic-growth opportunities in Canada and the United States. By concentrating on our long-life assets, including Greenstone in Ontario, Valentine in Newfoundland and Labrador, and Castle Mountain in California, we position the Company to deliver stronger margins and sustainable returns,” commented Darren Hall, CEO of Equinox Gold on the transaction.
The operations on a combined basis have generated production of 185,160 ounces of gold in the first nine months of 2025, at an all in sustaining cost of $2,107 per ounce.
Moving forward, Equinox Gold has stated that it’s production platform is to consist of the Valentine and Greenstone mines in Canada, Mesquite in California, and El Limon and Libertad in Nicaragua. 2026 production from this platform is expected to be between 700,000 and 800,000 ounces on a preliminary basis, with further growth to come from expansions at Valentine and Castle Mountain, and a redefined development plan for Los Filos.
Consideration from the sale of the Brazil operations meanwhile will see the outstanding $500 million term loan fully repaid, along with the $300 million Sprott Loan and reducing the revolving credit facility, which is expected to move the company near to a net cash position.
Equinox Gold last traded at $20.23 on the TSX.
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