Equinox Gold (TSX: EQX) has significantly deleveraged its balance sheet, with the company reporting this morning that it has completed the US$1.0 billion sale of its Brazilian operations.
The sale, which saw its Aurizona Mine, RDM Mine and Bahia Complex sold to a subsidiary of CMOC Group, has reportedly closed, with Equinox receiving upfront consideration of US$900 million in cash proceeds for the assets. A US$115 million contingent payment linked to production will meanwhile potentially be received on January 23, 2027.
Proceeds from the sale are being used to pay off debt currently on the books, with a US$500 million term loan set to be immediately repaid, while US$300 million is being paid on the outstanding Sprott Loan. A payment is also to be made on the outstanding revolving credit facility.
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Following the repayments, senior debt is to be reduced to just US$580 million, while net debt will sit at US$150 million.
“Monetizing the Brazil Operations has streamlined our portfolio and transformed our balance sheet. Equinox Gold is now well established as a leading North America focused gold producer, with greater financial flexibility to self-fund high return, near term organic growth opportunities and consider capital return initiatives. Our development pipeline has the potential to add 450,000 to 550,000 ounces of incremental annual gold production in the coming years,” commented Darren Hall, CEO of Equinox Gold.
Equinox Gold last traded at $22.02 on the TSX.
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