Equinox Gold Sells Brazilian Operations to CMOC for Over $1 Billion

Equinox Gold’s Aurizona mine in Brazil. Credit: Equinox Gold

Equinox Gold has announced the sale of its Brazilian operations to China’s CMOC Group in a transaction valued at more than $1 billion. The deal, disclosed in a press release on Sunday, marks a significant restructuring for the Canadian gold miner as it pivots toward a North American-focused portfolio.

The assets included in the sale are Equinox’s full ownership of the Aurizona mine in Maranhão, the RDM mine in Minas Gerais, and the Bahia complex, which comprises the Fazenda and Santa Luz mines. Together, these operations were expected to deliver between 250,000 and 270,000 ounces of gold in 2025, according to company guidance.

The agreement provides for an upfront cash payment of $900 million upon closing, with an additional contingent payment of up to $115 million linked to production, payable one year later.

Equinox CEO Darren Hall described the divestment as a pivotal step that positions the company as a pure North American gold producer, underpinned by strong cash flow and a tier-one growth profile. Following the sale, the company’s portfolio will be anchored by the Valentine and Greenstone mines in Canada—both of which entered commercial production within the past 13 months—and the long-established Mesquite mine in California.

Hall emphasized that monetizing the Brazilian assets simplifies the company’s portfolio and allows capital to be redeployed into higher-return, lower-risk growth opportunities in Canada and the United States. The Greenstone mine alone is expected to contribute between 220,000 and 260,000 ounces of gold this year, nearly matching the combined output of the Brazilian operations. The Valentine mine, which reached commercial production in November, is projected to add 175,000 to 200,000 ounces annually once fully ramped up, while Mesquite is forecast to produce 85,000 to 95,000 ounces in 2025.

Equinox’s growth pipeline also includes the El Limón and Libertad mines in Nicaragua, acquired earlier this year through its $1.8 billion takeover of Calibre Mining.

Financially, the sale strengthens Equinox’s balance sheet, enabling the company to fully repay its $500 million term loan and a $300 million facility with Sprott. The immediate debt retirement is expected to reduce interest expenses significantly and enhance per-share cash flow, providing resources for organic growth. Planned expansions at the Valentine mine, the Castle Mountain project in California, and a new development plan at Los Filos in Mexico are among the company’s next priorities.

Assuming stable performance across its portfolio, Equinox anticipates total production of between 700,000 and 800,000 ounces in 2026. Formal production and cost guidance will be issued early in the year.