Press Release

Canadian company Equinox Gold announced the sale of gold mines in Brazil for US$1.015 billion to the Chinese company CMOC Group. The mines sold are Aurizona, in Maranhão; Riacho dos Machados, in Minas Gerais; and others in the so-called Bahia Complex. 100% of the operations will be sold. In the agreement reached with the Chinese, Equinox Gold will receive US$900 million in cash upon closing the transaction, which is still subject to approval by Brazilian authorities. Another US$115 million will be paid a year later, subject to adjustments and productivity contingencies, according to a statement.

The expectation is that the closing of the transaction should take place in the first quarter of 2026. The sale of the mines occurs amidst record highs for gold in the global market, with increased geopolitical and economic uncertainty leading investors to seek safety in the metal. Demand for gold has been gaining strength for at least three years, driven by purchases from central banks, especially China's. Since 2023, gold has risen by more than 60%, and this year the price per troy ounce surpassed US$4,000 for the first time. With the rise in gold prices, investment bankers and law firms report intense activity from foreign buyers exploring gold mines in Brazil and other parts of the world.

Recently, the sale of a mine in Argentina entered the market. Equinox Gold plans to use the proceeds from the sale to pay off debts, one of US$500 million related to a loan and another of US$300 million. With the sale of its Brazilian operation, Equinox states that it will focus on its operations in Canada, California, and Nicaragua. In the transaction, Equinox was advised by BMO Capital Markets and the law firms Blake, Cassels & Graydon. Veirano Lawyers CMOC was advised by Canaccord Genuity Corp and the law firms McCarthy Tétrault and Mattos Filho .

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