CMOC (03993) Plans $1.015 Billion Acquisition of Three Major Gold Mining Assets in Brazil

Stock News12-15 08:26

CMOC (03993) announced that its subsidiary, CMOC Limited, along with its newly established wholly-owned subsidiary 17536682 Canada Inc., signed an agreement with Canadian-listed Equinox Gold Corp. (EQX) and its wholly-owned subsidiary Leagold Mining Corporation on December 14, 2025 (Beijing time).

The deal involves CMOC Limited acquiring 100% equity in Leagold LatAm Holdings B.V. (LatAm) and Luna Gold Corp. (LGC) from EQX for $1.015 billion. The payment includes $900 million in cash at closing and up to $115 million in contingent cash payments linked to production volumes one year post-closing. This acquisition grants CMOC full ownership of the Aurizona, RDM, and Bahia gold mining assets.

The Aurizona Gold Mine, located near Godofredo Viana in Brazil's Maranhão State, is less than 3 km from the Atlantic coast. Current operations focus on the Piaba open pit and Tatajuba satellite open-pit deposit, with projected 2025 gold output of 70,000–90,000 ounces. A 2021 pre-feasibility study suggests expanding into the Piaba underground deposit and other satellite pits could nearly double the mine's lifespan to 11 years, with peak annual production potentially exceeding 160,000 ounces.

The RDM Gold Mine, situated in Minas Gerais State about 560 km north of Belo Horizonte, was discovered in 1986 and operated as an open-pit heap leach mine until 1997. Reactivated in early 2014 with a carbon-in-leach (CIL) plant, its 2025 production is estimated at 50,000–60,000 ounces.

The Bahia Complex comprises the Fazenda and Santa Luz mines, located 55 km apart in Bahia State's Maria Preta mining district. Fazenda, operational for nearly 40 years with over 3.3 million ounces of cumulative production, primarily uses underground mining. A January 2025 technical report incorporating 200,000 meters of new drilling data indicates potential operations until 2033 with room for output expansion. Santa Luz employs open-pit mining and resin-in-leach (RIL) processing, achieving higher recovery rates than previous CIL methods. The complex's 2025 production guidance stands at 125,000–145,000 ounces.

Collectively, these assets contain 5.013 million ounces of gold resources averaging 1.88 g/t and 3.873 million ounces of reserves at 1.45 g/t.

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