BRIEF: CMOC to buy four Brazilian gold mines from Equinox for $1 billion

CMOC Group Ltd. (3993.HK) said on Monday it will pay $1 billion for three gold mining assets in Brazil from Canada’s Equinox Gold Corp. (EQX.TO), as it diversifies beyond its core business in copper, cobalt, molybdenum, tungsten and niobium mining.

Under the deal, CMOC will acquire 100% of Leagold LatAm Holdings B.V. and Luna Gold Corp. from Equinox for $900 million in cash, and will pay up to another $115 million later based on the mines’ output in the year after the deal closes. The deal will give CMOC access to the Aurizona and RDM gold mines, as well as the Bahia gold mining complex, which includes the Fazenda and Santa Luz mines.

CMOC’s purchase comes as gold trades at record high prices as many central banks and individual investors purchase the precious the metal to hedge against future weakness in the U.S. dollar.

CMOC’s shares rose 0.6% on Monday after the announcement, but retreated on Tuesday and were down 2.2% in afternoon trading. The stock has more than tripled this year. Equinox’s Canada-listed shares fell 5% on Monday.

By Doug Young

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