Luoyang Molybdenum Co., Ltd. plans to acquire 100% of two subsidiaries of EQX for $1.015 billion, significantly expanding its gold assets in Brazil.

Information on the Target

In a significant move to expand its gold assets, Luoyang Molybdenum Co., Ltd. (LMOC) has announced its intent to acquire 100% equity in two subsidiaries of the Canadian listed company EQX for $1.015 billion. This acquisition grants LMOC full ownership of four gold mines situated in Brazil, including the Aurizona and RDM gold mines. The two target companies have reported substantial revenues of over CNY 4.1 billion and a net profit of CNY 1.013 billion in the first nine months of the year, positioning them on par with a medium-sized mining company.

LMOC representatives highlighted that the acquired gold assets possess ore grades exceeding the average levels of currently operating global gold mines. These assets are actively operational, and with successful regulatory approvals, they will be directly integrated into LMOC's financial statements. This acquisition is projected to create synergies with LMOC's existing gold operations in Ecuador and its niobium and phosphate ventures in Brazil.

Industry Overview in Brazil

Brazil holds a prominent position in the global mining industry, with significant deposits of various minerals including gold, niobium, and phosphate. The domestic mining sector has recently experienced