Equinox Gold Divested its Entire Stake in Pilar Gold Mine

SEATTLE (Scrap Monster): Vancouver, B.C.-based Equinox Gold Corp. announced sale of its Pilar Gold Mine in Brazil to Pilar Gold Inc. The company has divested its entire stake in the mine to Canadian firm Pilar Gold Inc. in a $38 million cash deal.

The $38 million in cash will be payable as follows: $10.5 million on closing, which has already been received. The second instalment of $10 million is payable on or before May 31, 2021, whereas the final payment of $17.5 million is payable on or before July 31, 2021. As per the deal, Equinox will receive a 9.9% equity interest in the mine from Pilar Gold and a 1% net smelter return royalty on production.

ALSO READ:

Equinox Gold Operating Cash Flow Witnessed Four-Fold Surge

WGC Added Equinox Gold to its Board of Members

The Pilar Gold Mine accounts for approximately 5% of Equinox Gold’s 2021 gold production guidance of between 600,000 and 665,000 ounces.

Commenting on the development, Christian Milau, CEO, Equinox Gold said that the sale of the mine is a step toward optimizing its portfolio in order to focus on the larger production and development assets. The Pilar Gold Mine is an excellent foundation mine for an emerging gold company, he added.