Investing.com– China’s CMOC Group (HK:3993), one of the country’s biggest miners, said it will buy Equinox Gold’s Brazilian mines for $1 billion, as it diversifies further from base metals and into the red-hot precious metals sector.
CMOC will pay Equinox (TSX:EQX) an upfront $900 million in cash and an additional up to $115 million based on certain production targets, the two companies announced in separate press releases.
CMOC will obtain 100% interests in the Aurizona Gold Mine, RDM Gold Mine and the Bahia Integrated Mining Area in Brazil.
The deal is expected to close in the first quarter of 2026, subject to approvals from Chinese and Brazilian regulators, the companies said.
The move comes as CMOC diversifies beyond its core copper and cobalt mining and into precious metals, which have become a hot sector this year following stellar rallies in gold and silver prices.
Equinox said a bulk of the proceeds from the deal will be deployed towards meeting its debt obligations. The Canadian miner said the sale was also aimed at simplifying its portfolio and focusing more on its core operations in Canada and the United States.
CMOC shares rose 1.1% in Hong Kong trade.
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