CMOC Group Limited (03993) plans to acquire three major gold mining assets in Brazil for $1.015 billion.

CMOC Group Limited (03993) announced that Luoyang Luanchuan Molybdenum Industry Group Co., Ltd. (hereinafter referred to as "the Company") and its subsidiary, CMOC Group Limited Holding Co., Ltd. (hereinafter referred to as "CMOC Limited"), along with its newly established fully owned subsidiary, 17536682 Canada Inc., signed an agreement on December 14, 2025 with the Canadian listed company Equinox Gold Corp. (hereinafter referred to as "EQX") and its fully owned subsidiary Leagold Mining Corporation. CMOC Limited plans to acquire 100% equity of Leagold LatAm Holdings B.V. and Luna Gold Corp. under EQX for a total of 1.015 billion US dollars, including 900 million US dollars in cash to be paid at closing, and an additional contingent cash payment of up to 115 million US dollars linked to sales one year after closing, in order to acquire the Aurizona gold mine, RDM gold mine, and Bahia integrated mining area with 100% ownership. The Aurizona gold mine is located near the town of Godofredo Viana in Maranho State, Northeast Brazil, less than 3 km from the entrance to the Atlantic China Welding Consumables, Inc. Currently, mining operations at the mine are mainly focused on the Piaba open pit and Tatajuba satellite open-pit deposit. The gold production at Aurizona mine is expected to be between 70,000 to 90,000 ounces in 2025. According to the pre-feasibility study report released by the Company in September 2021, mining of the Piaba underground deposit and other satellite open-pit deposits in addition to the existing Piaba open pit mining can extend the mine's service life to nearly double, reaching 11 years and increasing the gold production. It is estimated that the peak annual production could exceed 160,000 ounces. The RDM gold mine is located in Minas Gerais State, Brazil, approximately 560 km north of the state capital of Belo Horizonte. The mine body was discovered in 1986 and operated in an open-pit heap leach mine mode until 1997. In early 2014, the gold mine started operating a carbon-in-leach (CIL) processing plant. The gold production at RDM mine is expected to be between 50,000 to 60,000 ounces in 2025. The Bahia integrated mining area includes the Fazenda gold mine and Santa Luz gold mine. Both mines are located in the Maria Preta mining district in Bahia State, Brazil, with a distance of only 55 km between them. The Fazenda gold mine has been operating for nearly 40 years, with a cumulative gold production exceeding 3.3 million ounces. Currently, the mine primarily operates underground mining, supplemented by a small amount of small-scale open pit mining operations. In January 2025, EQX released updated mineral reserve and mineral resource estimates and a new technical report on the Fazenda gold mine. The report integrates nearly 200,000 meters of new drilling data and updated geological models, showing the mine's service life can be extended to 2033, with potential for increased production and further extension of service life. The Santa Luz gold mine operates using open pit mining, with resin-in-leach (RIL) production line running as planned, achieving higher gold recovery rates than historic levels when using carbon-in-leach (CIL). In 2025, the gold production guidance for the Bahia integrated mining area is between 125,000 to 145,000 ounces. The above assets collectively include 5.013 million ounces of gold resources, with an average grade of 1.88 g/t; and 3.873 million ounces of gold reserves, with an average grade of 1.45 g/t.