Equinox sells its Pilar Gold Mine in Brazil

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Canadian mining company Equinox Gold has sold its Pilar Gold Mine in Brazil to Pilar Gold Inc. for $38 million cash, a 9.9% equity interest in Pilar Gold and a 1% net smelter returns royalty on production from the mine.

The Pilar Gold Mine accounts for approximately 35,000 ounces or 5% of Equinox Gold’s previously reported 2021 production guidance of 600,000 to 665,000 ounces of gold.

Christian Milau, CEO of Equinox Gold, said the sale of the mine was a step toward optimising the company’s portfolio to focus on its 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,” he continued.

Adertisement

“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.”

Image credit: https://www.equinoxgold.com/