Equinox Gold Corp. is pleased to announce that it has entered into a definitive agreement to sell its Mercedes Gold-Silver Mine in Mexico (“Mercedes”) to Bear Creek Mining Corporation for aggregate consideration of:
Christian Milau, CEO of Equinox Gold, commented: “We acquired Mercedes in April this year as part of our acquisition of Premier Gold Mines and the large-scale Greenstone Gold Project. Mercedes is non-core to Equinox Gold, representing 5% of our 2021 production guidance and 2% of our resources. The sale of Mercedes strengthens our balance sheet with $100 million as we focus on growth through expansion and development of our larger gold projects, including Greenstone. Equinox Gold will also become a significant shareholder in Bear Creek, continuing to participate in the success of Mercedes and in the future development of Bear Creek’s Corani silver-lead-zinc deposit, one of the largest, fully-permitted silver deposits in the world.”
The Transaction is subject to certain regulatory approvals including approval of the Mexican Comisión Federal de Competencia Económica and other customary closing conditions. The Transaction is expected to close in the first quarter of 2022.
About Equinox Gold
Equinox Gold is a growth-focused Canadian mining company operating entirely in the Americas, with seven operating gold mines (including Mercedes) and a clear path to achieving more than one million ounces of annual gold production from a pipeline of development and expansion projects. Equinox Gold’s common shares are listed on the TSX and the NYSE American under the trading symbol EQX. Further information about Equinox Gold’s portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at firstname.lastname@example.org.