Equinox Gold Corp. has agreed to sell its full ownership of the Aurizona Mine, RDM Mine and Bahia Complex in Brazil to a subsidiary of CMOC Group for a total consideration of $1.015 billion. The deal will provide the company with $900 million in cash at closing, plus an additional contingent payment of up to $115 million one year after closing if specified production milestones are met.
The proceeds will be used to retire a $500 million term loan and a $300 million Sprott loan, and to reduce the company’s revolving credit facility. By eliminating more than $800 million of debt, Equinox will lower its interest expense, improve its leverage ratios, and free cash flow for future growth or shareholder returns.
The sale marks a strategic pivot to a North‑American‑focused portfolio. Equinox will retain its tier‑one assets in Canada (Greenstone and Valentine), the Mesquite mine in California, and the El Limón and Libertad mines in Nicaragua. The divestiture removes exposure to Brazil’s regulatory and political risks and concentrates the company’s operations in jurisdictions with stable mining regimes and predictable permitting processes.
Equinox’s Q3 2025 results provide context for the transaction. The company reported revenue of $819 million, up 91% year‑over‑year, and adjusted net income of $147.4 million ($0.19 per share). Cash flow from operations reached $322.1 million, and the company retired $139 million of debt during the quarter. The strong financial performance, combined with the debt‑paydown from the sale, positions Equinox to pursue higher‑margin projects in its core North‑American assets.
CEO Darren Hall said the transaction “is a pivotal step to position Equinox Gold as a North‑American focused gold producer underpinned by robust cash flow and a tier‑one growth profile.” He added that the proceeds “will transform our balance sheet, immediately strengthen our financial position by fully repaying our $500 million Term Loan and $300 million Sprott Loan, and reduce our revolving credit facility, thereby greatly reducing interest expense and enhancing per‑share cash flow.”
The deal aligns with a broader industry trend of mining companies shedding non‑core assets in less stable jurisdictions to focus on core, high‑quality operations. CMOC Group’s interest underscores the growing appetite for established gold production assets in Brazil. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary conditions.
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