Canadian mining company Equinox Gold has agreed to sell its Brazil portfolio to a subsidiary of the CMOC Group for a total consideration of $1.01 billion (C$1.39 billion), to focus on growth in North America.
The sale includes its 100% interest in the Aurizona Mine, the RDM Mine and the Bahía Complex.
The terms of the transaction provide Equinox Gold with $900 million in upfront cash upon closing, subject to customary adjustments.
An additional production-linked contingent cash payment of up to $115 million will be paid one year after closing if specified production thresholds are met.
The transaction is expected to close in the first quarter of 2026, pending regulatory approvals and standard conditions, and is not subject to any financing conditions.
Following the sale, Equinox Gold’s production platform will consist of the Valentine and Greenstone mines in Canada, the Mesquite mine in California and the El Limón and Libertad mines in Nicaragua.
Equinox Gold aims to increase its production to between 700,000oz and 800,000oz of gold in 2026 as the Valentine and Greenstone mines reach nominal capacity and operational performance remains stable across the portfolio.
The company noted additional near-term organic growth thanks to the Valentine expansion, phase two of Castle Mountain and a revised development plan at Los Filos in Mexico.
Equinox Gold plans to issue formal 2026 production and cost guidance early next year.
Equinox Gold CEO Darren Hall said: “The sale of our Brazilian operations is a critical step in positioning Equinox Gold as a North American-focused gold producer, supported by strong cash flow and a top-tier growth profile.
“The proceeds will transform our balance sheet and immediately strengthen our financial position by fully repaying our $500 million term loan and $300 million Sprott loan and reducing our revolving credit facility. This will greatly reduce interest expense and improve cash flow per share. The company will have greater flexibility to self-fund organic growth and consider capital return initiatives within a disciplined capital allocation framework.”
After completing its merger with Caliber Mining, Equinox Gold conducted a comprehensive review of its expanded portfolio and received multiple inquiries.
The transaction will be effected through the sale of issued and outstanding shares of certain wholly owned non-Brazilian subsidiaries of Equinox Gold that indirectly own operations in Brazil.
Hall added: “Monetizing our operations in Brazil simplifies the portfolio and allows the company to deploy capital toward higher-return, lower-risk, organic growth opportunities in Canada and the U.S. By focusing on our long-lived 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.