Equinox Gold Corp. has sold its Pilar gold mine in Brazil to Pilar Gold Inc. for aggregate consideration of $38 million in cash. The amount will be payable as $10.5 million on closing, which has been received; $10 million payable on or before May 31, 2021; and $17.5 million payable on or before July 31, 2021. The sale also includes a 9.9% equity interest in Pilar Gold Inc. and a 1% net smelter returns royalty on production from the Pilar gold mine.

“We are privileged to acquire an asset of the caliber of the Pilar gold mine, which will be our foundation asset for the company,” Pilar Gold CEO Jeremy Gray said. “The operation has an outstanding production history, high-quality infrastructure and a substantial gold resource that we believe will support a long mine life. We look forward to working with the Pilar gold mine’s existing team and investing in the operation to increase production and gold reserves.”

The Pilar gold mine accounts for approximately 35,000 ounces (oz) or 5% of Equinox Gold’s previously reported 2021 production guidance of 600,000 oz to 665,000 oz of gold.

“Equinox Gold has grown considerably over the last two years and the sale of the Pilar gold mine is a step toward optimizing our portfolio to focus on our larger production and development assets,” Equinox Gold CEO Christian Milau said.