Equinox Gold agrees to sell Brazil portfolio to CMOC for $1.01bn

Core Viewpoint - Equinox Gold is divesting its Brazil portfolio to focus on North American growth, with a total consideration of $1.01 billion (C$1.39 billion) [1][2] Group 1: Transaction Details - The sale includes 100% interests in the Aurizona Mine, RDM Mine, and Bahia Complex [1] - Equinox Gold will receive $900 million in upfront cash upon closing, with an additional contingent cash payment of up to $115 million based on production thresholds achieved one year post-closing [2] - The transaction is expected to close in the first quarter of 2026, pending regulatory approvals [2][6] Group 2: Post-Sale Production Strategy - After the sale, Equinox Gold's production will consist of the Valentine and Greenstone mines in Canada, the Mesquite mine in California, and the El Limón and Libertad mines in Nicaragua [3] - The company aims to increase gold output to between 700,000 ounces and 800,000 ounces in 2026 as the Valentine and Greenstone mines reach nameplate capacity [3] Group 3: Financial Impact and Growth Plans - The proceeds from the sale will fully repay a $500 million term loan and a $300 million Sprott loan, enhancing the company's financial position and reducing interest expenses [5] - Equinox Gold plans to self-fund organic growth and consider capital return initiatives within a disciplined capital allocation framework [5] - The company is focusing on organic growth opportunities in Canada and the US, particularly through projects like the Valentine Expansion and Castle Mountain phase two [4][7]