Equinox Gold (TSX: EQX) has entered into an arrangement to divest of assets in Nevada that were acquired in connection with the purchase of Calibre Mining. The company this morning announced an arrangement with Minera Alamos (TSXV: MAI), whereby they will sell two development projects along with a currently operating mine.
The assets to be sold off include the Pan Mine, as well as the Gold Rock and Illipah projects. The Pan Mine was the smallest operation in Equinox’s portfolio, with the mine previously guided to produce 30,000 to 40,000 ounces of gold in 2025 at an all in sustaining cost of $1,600 to $1,700 an ounce. The mine currently has resources of 288,000 ounces of gold at 0.36 g/t gold on a measured and indicated basis, inclusive of reserves.
Gold Rock meanwhile is a development stage, open pit heap leach operation found 8 kilometres away from the Pan Mine. A 2021 PEA outlined a 6.5 year mine life for the project with average annual production of 56,000 ounces. The asset currently has resources of 403,000 ounces of gold at 0.66 g/t measured and indicated, as well as 84,000 ounces at 0.87 g/t inferred.
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The assets are being sold off for total cash consideration of US$90 million, alongside US$25 million in Minera Alamos shares.
For Minera, the transaction will establish the company as a growing producer, with production now coming from both the Pan Mine and Santana, as well as a pipeline of development projects. The company intends to fund the transaction via a bought deal private placement led by Stifel that will raise C$110 million in gross proceeds at $0.355 per subscription receipt. Each receipt contains one share and one warrant, with warrants containing an exercise price of $0.705 per share which are valid for 36 months post-issuance.
The transaction is currently expected to close in the fourth quarter of 2025.
Equinox Gold last traded at $9.03 on the TSX.
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