Equinox Gold to Divest Brazilian Operations in $1.015 Billion Strategic Deal
Mining News | 2025-12-15 05:18:53
Management said the sale will significantly strengthen Equinox Gold’s balance sheet.
By Paul Ploumis
SEATTLE (Scrap Monster): Equinox Gold has agreed to sell its Brazilian operations in a landmark transaction valued at $1.015 billion, marking a major strategic shift toward North America.
The sale includes the company’s:
Aurizona Mine
RDM Mine
Bahia Complex
The buyer is a CMOC Group subsidiary, with Equinox Gold set to receive $900 million in upfront cash at closing and a potential additional $115 million tied to future production performance. The deal is expected to close in Q1 2026, subject to regulatory approvals, and carries no financing conditions.
Strengthening the Balance Sheet
Management highlighted that the divestment will significantly enhance the company’s balance sheet:
Repay $500 million term loan and $300 million Sprott loan
Reduce the revolving credit facility
Lower interest costs, immediately improving cash flow per share
Streamlined Portfolio
Following the transaction, Equinox Gold will focus on a simplified portfolio centered in Canada, the United States, and Nicaragua, with core assets including:
Greenstone and Valentine mines – Canada
Mesquite mine – California, USA
El Limón and Libertad mines – Nicaragua
The company forecasts 2026 gold production of 700,000 to 800,000 ounces as key projects ramp up.
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Strategic Benefits
The divestment is expected to:
Simplify the portfolio for more efficient operations
Enhance self-funded growth opportunities
Support disciplined capital allocation
Focus on long-life, lower-risk assets in tier-one jurisdictions
POLL
Post-divestment, where will Equinox Gold focus its operations?
Frequently Asked Questions
- What transaction did Equinox Gold announce?
Equinox Gold agreed to sell its Brazilian operations—including the Aurizona Mine, RDM Mine, and Bahia Complex—to a CMOC Group subsidiary for $1.015 billion.
- How much will Equinox Gold receive from the sale?
The company will receive $900 million in upfront cash at closing and a potential additional $115 million tied to future production performance.
- When is the transaction expected to close?
The deal is expected to close in Q1 2026, subject to regulatory approvals, with no financing conditions.
