Equinox Gold (NYSEAmerican:EQX) has agreed to sell all of its operating assets in Brazil to China-based CMOC Group in a transaction valued at more than $1 billion, according to a company press release issued on Sunday. The deal represents a significant change in the geographic composition of Equinox’s mining portfolio and follows a period of operational expansion in North America.

Under the terms of the agreement, CMOC will acquire Equinox’s 100% interests in several Brazilian gold operations. These include the Aurizona mine in the state of Maranhão, the RDM mine located in Minas Gerais, and the Bahia complex, which is made up of the Fazenda and Santa Luz mines. Collectively, these assets are forecast by Equinox to produce between 250,000 and 270,000 ounces of gold during the current year.

The total consideration for the sale consists of an upfront cash payment of $900 million, payable upon closing, along with a contingent cash payment of up to $115 million. The contingent portion is tied to production performance at the acquired mines and is due one year after the transaction closes.

Equinox Gold, which is listed on the Toronto Stock Exchange and the NYSE American under the symbol EQX, stated that the transaction will have a material impact on its balance sheet. The company said the proceeds from the sale are expected to allow for the full repayment of its existing $500 million term loan, as well as a separate $300 million facility with Sprott. According to Equinox, eliminating this debt would significantly reduce interest expenses and improve per-share cash flow.

Following the divestment, Equinox’s remaining portfolio will be primarily concentrated in North America. The company’s Canadian operations will be anchored by the Valentine and Greenstone mines, both of which entered commercial production within the past 13 months. Valentine reached commercial production approximately one month ago, while Greenstone has been ramping up operations over the past year.

Greenstone is expected to produce between 220,000 and 260,000 ounces of gold this year, a figure that is close to the combined annual output expected from the Brazilian operations being sold. Once fully operational, the Valentine mine is projected to deliver between 175,000 and 200,000 ounces of gold annually. In the United States, Equinox continues to operate the Mesquite mine in California, which has been in production since the late 1980s and is forecast to produce between 85,000 and 95,000 ounces of gold this year.

In addition to its Canadian and U.S. assets, Equinox’s growth profile includes the El Limón and Libertad mines in Nicaragua. These assets were added to the company’s portfolio through its $1.8 billion acquisition of Calibre Mining earlier this year, expanding Equinox’s presence in Central America.

Chief executive officer Darren Hall described the sale of the Brazilian operations as a pivotal development for the company. In comments included in the press release, Hall said the transaction positions Equinox as a North America-focused gold producer supported by cash flow and future growth potential. He also noted that monetizing the Brazilian assets simplifies the company’s portfolio and provides capital that can be allocated to what he characterized as higher-return, lower-risk organic growth opportunities in Canada and the United States.

Equinox indicated that the strengthened financial position resulting from the asset sale will support planned expansions at the Valentine mine and at the Castle Mountain project in California. The company is also pursuing a new development plan for its Los Filos project in Mexico, which it cited as another source of near-term growth.

Looking ahead, Equinox said that as the Valentine and Greenstone mines reach nameplate capacity, and assuming stable performance across its operations, it expects total gold production to reach between 700,000 and 800,000 ounces next year. The company added that it plans to provide formal production and cost guidance in early 2026.

The transaction with CMOC is part of a broader strategic shift by Equinox away from Brazil and toward a more geographically concentrated asset base in North America and select parts of Latin America. While the Brazilian operations have been a meaningful contributor to production in recent years, the company is now relying on newer mines in Canada, long-standing U.S. operations, and recently acquired assets in Nicaragua to drive future output and cash flow.

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