Make Kitco Your Homepage

Pilar Gold acquires Pilar gold mine from Equinox for $38M, equity and royalty interest

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Pilar Gold, a private Canadian company with plans to seek a public listing later this year, announced today that on April 16, 2021, the company acquired the Pilar gold mine in Brazil from Equinox Gold for aggregate consideration of US$38 million in cash, a 9.9% equity interest in Pilar Gold, and a 1% net smelter returns royalty on production from the Pilar gold mine.

The company is also announced that it successfully completed a private placement of 66,630,938 shares at an issue price of C$0.25/share for gross proceeds of C$16,630,938. The net proceeds from the private placement will be used as partial payment towards the acquisition of the Pilar gold mine, and for associated costs, and general working capital purposes.

CEO Jeremy Gray commented, "We are privileged to acquire an asset of the calibre of the Pilar gold mine, which will be our foundation asset for the company. The operation has an outstanding production history, high quality infrastructure and a substantial gold resource that we believe will support a long-mine life. We look forward to working with the Pilar gold mine's existing team and investing in the operation to increase production and gold reserves.  Pilar Gold is excited to use this acquisition to form the foundation for an aggressive regional growth strategy."

The Pilar gold mine is in the mining friendly state of Goiás, Brazil and enjoys paved access and nearby towns that accommodate the work force of approximate 750 employees and consultants.

The Pilar gold mine is currently producing at an annualized rate of approximately 40,000 ounces Au per annum. The development and infrastructure include three underground mines, Pilar, Maria Lázara and Caiamar along with an open pit development opportunity at adjacent Tres Buraços. The backbone of the Pilar gold mine is an efficient 4,000 tonne per day mill with average gold recovery rates of approximately 92%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.