China’s CMOC Group (OTC Pink:CMCLF) has agreed to buy a portfolio of gold assets in Brazil from Canada’s Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX) for US$1.015 billion,
CMOC said Monday (December 15) that it will acquire 100 percent of Equinox Gold’s Brazilian operations, comprising the Aurizona mine in Maranhão, the RDM mine in Minas Gerais, and the Bahia complex, which includes the Fazenda and Santa Luz mines.
The acquired assets collectively host total gold resources of 5.013 million ounces and reserves of 3.873 million ounces, according to CMOC. Gold production from the Brazilian operations totaled 247,300 ounces in 2024, in line with Equinox’s guidance of 250,000 to 270,000 ounces of output this year.
The consideration includes a US$900 million upfront cash payment at closing and a contingent payment of up to US$115 million tied to production volumes during the first year after closing.
“The transaction is an important step that showcases our conviction in gold and delivers on our strategy of pillaring the portfolio on copper and gold,” said Liu Jianfeng, chairman and chief investment officer of CMOC, in the official press release.
CMOC said the deal will add around eight tons of annual gold production to its portfolio. The company expects its gold output to potentially exceed 20 tons a year once its Odin gold mine in Ecuador enters operation, positioning the group for further long-term growth in the metal.
For Equinox Gold, the sale also marks a change in operational strategy. The Vancouver-based said divesting its Brazilian assets will simplify its portfolio and sharpen its focus on North America.
Chief executive Darren Hall described the move as a turning point for the company, calling the transaction a “pivotal step” toward becoming a pure North American-focused gold producer.
Following the sale, Equinox’s core assets will include the Valentine and Greenstone mines in Canada, both of which entered commercial production within the past 13 months, and the long-running Mesquite mine in California.
Greenstone is expected to produce between 220,000 and 260,000 ounces of gold this year, while Valentine is forecast to deliver 175,000 to 200,000 ounces annually once fully ramped up. The Mesquite mine is also projected to contribute around 95,000 ounces in 2025.
As production at its Canadian operations ramps up to full capacity, Equinox said it anticipates annual gold output in the range of 700,000 to 800,000 ounces next year and plans to release detailed production and cost guidance in early 2026.
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and conditions.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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