CMOC announces acquisition of Brazilian gold assets for US$1.015 billion
CMOC | 2025-12-15
China Molybdenum Corporation (CMOC Group) announced on December 15 that, with the approval of the company's board of directors, it will acquire 100% equity in three gold mine assets of Canadian mining company Equinox Gold (TSX: EQX, NYSE-A: EQX) in Brazil, including the Aurizona Gold Mine, RDM Gold Mine and Bahia Complex (collectively referred to as the "Brazilian Business Assets") for a total consideration of US$1.015 billion. The transaction consideration includes a down payment of US$900 million and a contingent payment of up to US$115 million, which will be determined based on gold sales in the first operating year after the transaction is completed. The transaction is expected to be completed in the first quarter of 2026 and is subject to approval by the Brazilian antitrust agency and relevant Chinese regulatory authorities.
Equinox Gold is a Canadian mining company listed on the Toronto Stock Exchange and the New York Stock Exchange. It owns multiple mining assets in production in Canada and many countries in the Americas, and also holds a series of reserves of projects under construction and expansion. Equinox Gold will further focus on its North American gold business by selling its Brazilian business assets.
This transaction includes a total of 4 producing gold mines, specifically: the Aurizona gold mine located in the northeastern state of Maranhão, the Bahia complex (including the Fazenda gold mine and the Santa Luz gold mine) in the eastern state of Bahia, and the RDM gold mine in the southeastern state of Minas Gerais. The total amount of gold resources held by the above assets is 5.013 million ounces, with an average grade of 1.88 g/ton; gold reserves are 3.873 million ounces, with an average grade of 1.45 g/ton. The asset's gold production in 2024 will reach 247,300 ounces, and the production guidance in 2025 is 250,000-270,000 ounces.
Liu Jianfeng, Chairman and Chief Investment Officer of China Molybdenum, said: "CMOC is optimistic about the long-term market prospects of gold assets. This transaction is a major move by the company to implement the 'copper-gold bipolar' M&A strategy. Brazil is rich in resources and has relatively stable geopolitics. This project will form a good synergy with CMOC's Brazilian niobium and phosphorus assets and further deepen the company's resource layout in South America."
This is another major gain for China Molybdenum on the gold track since its acquisition of Ecuador’s Veuve Clicquot House Gold Mine (Odin Mining) in April this year. After the transaction is completed, the annual output of China Molybdenum's gold business will increase by approximately 8 tons; after Ecuador's Odin Mining goes into production, the company's annual gold output is expected to exceed the 20 tons mark. Relying on stronger resource reserves, CMOC will continue to seek and promote long-term growth in its gold business.
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