Equinox Gold Corp. has sold its Pilar Gold Mine in Brazil to Pilar Gold Inc.
The sale is reportedly being made for an aggregate consideration of:
- US$38 million in cash, payable as follows:
- US$10.5 million on closing, which has been received.
- US$10 million payable on or before 31 May 2021.
- US$17.5 million payable on or before 31 July 2021.
- A 9.9% equity interest in Pilar Gold Inc.
- 1% net smelter returns royalty on production from the Pilar Gold Mine.
Christian Milau, CEO of Equinox Gold, comments:
“Equinox Gold has grown considerably over the last two years and the sale of the Pilar Gold Mine is a step toward optimising our portfolio to focus on our larger production and development assets. With existing production and growth potential, the Pilar Gold Mine is an excellent foundation mine for an emerging gold company. We look forward to participating in the success of Pilar Gold Inc. as a supportive shareholder as they launch a new Brazil-focused gold producer.”
Jeremy Gray, CEO of Pilar Gold Inc., comments:
“We are privileged to acquire an asset of the calibre of the Pilar Gold Mine, which will be our foundation asset for the company. The operation has an outstanding production history, high quality infrastructure and a substantial gold resource that we believe will support a long mine life. We look forward to working with the Pilar Gold Mine’s existing team and investing in the operation to increase production and gold reserves.”
The Pilar Gold Mine accounts for approximately 35 000 oz or 5% of Equinox Gold’s previously reported 2021 production guidance of 600 000 to 665 000 oz of gold. Guidance will be updated in May, including to reflect the sale of the Pilar Gold Mine and the addition of the producing Mercedes mine in Mexico to Equinox Gold’s portfolio with the recent completion of the company’s acquisition of Premier Gold Mines.
Pilar Gold Inc. is a private Canadian company with plans to seek a public listing later this year.
Read the article online at: https://www.globalminingreview.com/mining/21042021/equinox-gold-sells-pilar-gold-mine/