By Brazil Stock Guide – Equinox Gold Corp. (EQX) agreed to sell its Brazilian gold mining operations to China’s CMOC Group Ltd. (603993.SS) in a transaction valued at $1.015 billion, marking one of the largest recent foreign acquisitions in Brazil’s mining sector.
The deal covers 100% of the Aurizona mine in Maranhão, the Riacho dos Machados mine in Minas Gerais, and additional assets that form the company’s Bahia complex. Under the terms of the agreement, Equinox will receive $900 million in cash at closing, subject to regulatory approvals in Brazil. An additional $115 million is scheduled to be paid one year later, depending on productivity-linked adjustments and contingencies.
Equinox expects the transaction to be completed in the first quarter of 2026. The sale comes amid record gold prices driven by rising geopolitical and economic uncertainty, which has boosted demand for the metal as a safe-haven asset.
Gold prices have climbed more than 60% since 2023, with spot prices surpassing $4,000 per troy ounce for the first time this year. Demand has been supported by sustained purchases from central banks, particularly China’s, reinforcing investor interest in gold-producing assets worldwide.
The surge in prices has intensified global interest in gold mines, with investment banks and law firms reporting increased inquiries from foreign buyers seeking assets in Brazil and other mining jurisdictions. Similar sales processes have recently emerged in neighboring countries, including Argentina.
Equinox said proceeds from the Brazilian divestment will be used primarily to reduce debt, including a $500 million loan and an additional $300 million in liabilities. Following the sale, the company plans to focus on its core operations in Canada, California and Nicaragua.
BMO Capital Markets advised Equinox on the transaction, alongside legal counsel from Blake, Cassels & Graydon and Veirano Advogados. CMOC was advised by Canaccord Genuity Corp., with legal support from McCarthy Tétrault and Mattos Filho.
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