Home / Business and Economy / Equinox Gold Sells Brazil Assets for $1.01B, Eyes North America
Equinox Gold Sells Brazil Assets for $1.01B, Eyes North America
15 Dec
Summary
- Equinox Gold divests Brazil portfolio for $1.01 billion to fund North American growth.
- Sale includes Aurizona, RDM, and Bahia Complex mines in Brazil.
- Proceeds will fully repay Equinox Gold's debt and strengthen its financial position.
Equinox Gold has announced a pivotal divestment of its entire Brazil portfolio to a subsidiary of CMOC Group for $1.01 billion. This strategic transaction includes the sale of its 100% stakes in the Aurizona Mine, RDM Mine, and Bahia Complex, marking a significant shift towards a North American operational focus.
The substantial upfront cash payment, along with potential contingent payments, will be instrumental in transforming Equinox Gold's balance sheet. The company plans to fully repay its $500 million term loan and $300 million Sprott loan, while also reducing its revolving credit facility, thereby substantially decreasing interest expenses.
Post-divestment, Equinox Gold will concentrate on its Canadian assets, including the Valentine and Greenstone mines, along with the Mesquite mine in California, and operations in Nicaragua. This streamlined portfolio is expected to drive increased gold output and position the company for enhanced margins and sustainable returns.
