Equinox Gold climbs on deal to sell Mercedes Gold Mine

Bear Creek Mining

17/12/2021 16:20

** Shares of Equinox Gold Corp  EQX.TO  up 3% at C$8.55
    ** Co to sell Mercedes Gold-Silver Mine in Mexico to
Bear Creek Mining Corp for total consideration of $100 mln
 urn:newsml:reuters.com:*:nCNW8m9zQa
    ** EQX acquired Mercedes in April as part of its acquisition
of Premier Gold Mines and the large-scale Greenstone Gold
Project in Ontario, Canada
    ** Deal includes $75 mln playable on closing, $25 mln
payable within six months of closing, 24.73 mln common shares of
Bear Creek valued at ~$25 mln and 2% net smelter return payable
on production from Mercedes
    ** Co says Mercedes is non-core to Equinox Gold,
representing 5% of 2021 production guidance and 2% of resources
    ** Deal is expected to close in Q1 2022
    ** EQX is down 35.3% so far this year 

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))