Canadian mining company Equinox Gold has finalized an agreement to sell its entire portfolio of Brazilian assets to a subsidiary of China’s CMOC Group for a total cash consideration of $1.01 billion (C$1.39 billion).
The comprehensive transaction includes the transfer of full ownership of the Aurizona Mine, the RDM Mine, and the Bahia Complex.
This significant divestment represents a major strategic pivot for the Vancouver-based miner, allowing the company to streamline its geographic footprint and reallocate capital toward growth opportunities within North America.
Under the terms of the definitive agreement, Equinox will secure $900 million in cash at the closing of the deal, subject to customary purchase price adjustments.
An additional contingent payment of up to $115 million is tied to the future operational performance of the assets, payable one year after the transaction finalizes provided specific production targets are met.
For CMOC, a leading global miner with a strong presence in base metals and cobalt, the acquisition marks a substantial expansion into the Brazilian gold sector, adding significant, established production capacity to its international portfolio.
Commenting on the strategic shift, CEO Darren Hall stated that divesting the Brazilian operations represents a key move in positioning Equinox Gold as a North America-focused producer with strong cash flow and a top-tier growth profile.
He noted that the proceeds would significantly strengthen the company’s balance sheet by allowing it to fully repay its $500 million term loan and $300 million Sprott loan, as well as reduce its revolving credit facility. Read more...
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