Equinox Gold Announces Agreement to Sell its Mercedes Gold Mine
TSX: EQX
NYSE-A: EQX
Suite 1501 - 700 West Pender St., Vancouver, BC Canada V6C 1G8
[email protected] +1 604.558.0560 www.equinoxgold.com
NEWS RELEASE
Equinox Gold Announces Agreement to Sell its Mercedes Gold Mine
All dollar amounts are expressed in US$
December 17, 2021 – Vancouver, BC – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or
the “Company”) is pleased to announce that it has entered into a definitive agreement to sell its Mercedes Gold-
Silver Mine in Mexico (“Mercedes”) to Bear Creek Mining Corporation (TSXV: BCM) (“Bear Creek”) (the
“Transaction”) for aggregate consideration of:
• $100 million in cash, payable as follows:
- $75 million on closing of the Transaction; and
- $25 million payable within six months of closing of the Transaction.
• 24,730,000 common shares of Bear Creek valued at approximately $25 million based on current trading
prices; and a
• 2% net smelter return payable on production from Mercedes.
Christian Milau, CEO of Equinox Gold, commented: “We acquired Mercedes in April this year as part of our
acquisition of Premier Gold Mines and the large-scale Greenstone Gold Project. Mercedes is non-core to Equinox
Gold, representing 5% of our 2021 production guidance and 2% of our resources. The sale of Mercedes
strengthens our balance sheet with $100 million as we focus on growth through expansion and development of
our larger gold projects, including Greenstone. Equinox Gold will also become a significant shareholder in Bear
Creek, continuing to participate in the success of Mercedes and in the future development of Bear Creek’s Corani
silver-lead-zinc deposit, one of the largest, fully-permitted silver deposits in the world.”
The Transaction is subject to certain regulatory approvals including approval of the Mexican Comisión Federal
de Competencia Económica and other customary closing conditions. The Transaction is expected to close in the
first quarter of 2022.
About Equinox Gold
Equinox Gold is a growth -focused Canadian mining company operating entirely in the Americas, with seven
operating gold mines (including Mercedes) and a clear path to achieving more than one million ounces of annual
gold production from a pipeline of development and expansion projects. Equinox Gold’s common shares are
listed on the TSX and the NYSE American under the trading sym bol EQX. Further information about Equinox
Gold’s portfolio of assets and long -term growth strategy is available at www.equinoxgold.com or by email at
Equinox Gold Contacts
Christian Milau, Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: [email protected]
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Cautionary Notes and Forward-looking Statements
This news release contains certain forward- looking information and forward- looking statements within the meaning of applicable
securities legislation and may include future-oriented financial information. Forward-looking statements and forward-looking information
in this news release relate s to, among other things: the consummation and timing of the Transact ion; the satisfaction of the conditions
precedent to the Transaction; Equinox Gold and Bear Creek’s abilities to obtain all necessary permits, licenses and regulatory approvals in
a timely manner or at all, including the approval of the Mexican Comisión Federal de Competencia Económica; the anticipated receipt of
future cash payments to complete the Mercedes Gold Mine sale and from the net smelter return; the Company’s equity ownership in Bear
Creek; the strategic vision for the Company and expectations regarding exploration potential, production capabilities and future financial
or operating performance post-Transaction, including expectations for the Company’s investment in Bear Creek ; the strategic vision for
Bear Creek and its ability to achieve its growth objectives , including those objectives relating to the Corani silver -lead-zinc deposit; and
the Company’s ability to successfully advance its growth and development projects. Forward-looking statements or information generally
identified by the use of the words “ clear path”, “strengthen”, “future” and similar expressions and phrases or statements that certain
actions, events or results “could”, “would” or “should”, or the negative connotation of such terms, are intended to identify forward-looking
statements and information. Although the Company believes that the expectations reflected in such forward- looking statements and
information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance
that such expectations will prove to be correct. The Company has based these forward- looking statements and information on the
Company’s current expectations and projections about future events and these assumptions include: prices for gold remaining as
estimated; currency exchange rates remaining as estimated; the successful transition in the operation of the Mercedes Gold Mine ; the
expected operational benefits to the Company post-Transaction; the Company’s ability to achieve its production, cost and development
expectations for its operations and projects ; tonnage of ore to be mined and processed; ore grades and recoveries; availability of funds
for the Company’s projects and future cash requirements; capital, decommissioning and reclamation estimate s; Mineral Reserve and
Mineral Resource estimates and the assumptions on which they are based; prices for energy inputs, labour, materials, supplies and
services; no labour-related disruptions and no unplanned delays or interruptions in scheduled construction, development and production,
including by blockade; all necessary permits, licenses and regulatory approvals are received in a timely manner; the Company’ s ability to
comply with environmental, health and safety laws; the strategic vision and expectations for Bear Creek ; and the ability of Bear Creek to
achieve its production, cost and development expectations for the Mercedes Gold Mine. While the Company considers these assumptions
to be reasonable based on information currently available, they may prove to be incorrect. Accordingly, readers are cautioned not to put
undue reliance on the forward-looking statements or information contained in this news release.
The Company cautions that forward- looking statements and information involve known and unknown risks, uncertainties and other
factors that may cause actual results and developments to differ materially from those expressed or implied by such forward- looking
statements and information contained in this news release and the Company has made assumptions and estimates based on or related
to many of these factors. Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for e nergy inputs,
labour, materials, supplies and services; fluctuations in currenc y markets; operational risks and hazards inherent with the business of
mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or
structural formations, cave-ins, flooding and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks
and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; the Company’s ability
to obtain all necessary permits, licenses and regulatory approvals in a timely manner or at all; changes in laws, regulations and
government practices, including environmental, export and import laws and regulations; legal restrictions relating to mining including
those imposed in connection with COVID-19; risks relating to expropriation; increased competition in the mining industry; and those factors
identified in the Company’s MD&A dated March 19, 2021 and its Annual Information Form dated March 24, 2021, both for the year ended
December 31, 2020, and in the Company’s MD&A dated November 3, 2021 for the three and six months ended September 30, 2021, all
of which are available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar. Forward-looking statements and information
are designed to help readers understand management's views as of that time with respect to future events and speak only as of the date
they are made. Except as required by applicable law, the Company assumes no obligation to publicly announce the results of any change
to any forward- looking statement or information contained or incorporated by reference to reflect actual results, future events or
developments, changes in assumptions or changes in other factors affecting the forward- looking statements and information. If the
Company updates any one or more forward- looking statements, no inference should be drawn that the Company will make additional
updates with respect to those or other forward -looking statements. All forward -looking statements and information contained in this
news release are expressly qualified in their entirety by this cautionary statement.