Brazilian State Firm Seeks Injunction to Block Equinox Gold-CMOC Asset Sale

A Brazilian state-run mining company is seeking an emergency court injunction to block the sale of one of Equinox Gold's (TSX:EQX,NYSEAMERICAN:EQX) Brazilian assets.

Bloomberg reported that Companhia Baiana de Produção Mineral (CBPM) has asked the Bahia State Court of Justice to immediately repossess a lease area known as the Bahia Complex, according to a court document.

CBPM argues that Equinox was a leaseholder and not the owner of the concession, and therefore was not entitled to sell it without the state company’s express consent.

“The Canadian company sold a mining right that does not belong to it,” said CBPM President Henrique Carballal.

The injunction request relates specifically to the Bahia Complex and does not cover other Brazilian assets included in the transaction. Last December, Equinox agreed to sell its Brazilian operations to Contemporary Amperex Technology (SZSE:300750,HKEX:3750) in a US$1 billion deal expected to close in the current quarter.

Equinox said it has not received notice of any lawsuit.

Ryan King, executive vice president of capital markets, said the company “is confident that the sale of its operations in Brazil was fully compliant with Brazilian law and all contractual obligations,” in an emailed response to Bloomberg.

“While Equinox Gold is prepared to defend its position in court if required, the company remains open to engaging in constructive discussions with the State to seek a mutually agreeable resolution,” he added.

The legal challenge comes as Equinox closes what it's described as a “transformational” 2025.

On February 18, the company reported preliminary full-year gold production of 922,827 ounces, including 856,908 ounces that met its annual guidance range of 785,000 to 915,000 ounces, plus 65,918 ounces from its Valentine, Los Filos and Castle Mountain sites. In Q4 alone, Equinox produced a record 247,024 ounces of gold.

“2025 marked an important year of progress for Equinox Gold,” Hall said. “The merger with Calibre created a tier one North American focused gold producer anchored by two new long-life Canadian mines.”

Hall acknowledged earlier operational challenges at Greenstone, but said improvements were evident in the fourth quarter, when the mine produced more than 70,000 ounces, up 29 percent from the prior quarter.

Equinox has also reduced its debt by more than US$1.1 billion since the second quarter of 2025.

The company expects to produce between 700,000 and 800,000 ounces of gold in 2026, and to generate sufficient cashflow to eliminate its remaining debt this year.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.