Equinox Gold Announces Sale of Shares of Versamet Royalties
Equinox monetizes its Versamet stake for C$130m to streamline its balance sheet ahead of the Orla mining merger close.
Equinox Gold Corp. (EQX) executed a block trade through National Bank Financial to sell 8,713,000 common shares of Versamet Royalties Corporation, generating C$130 million in gross proceeds. Following the transaction, Equinox’s ownership stake in Versamet dropped from approximately 10.7% to approximately 2.7%. This reduction triggered the termination of Versamet’s right of first offer to acquire Equinox’s royalties and streams.
Under the terms of the investor rights agreement, the arrangement automatically terminates once Equinox’s ownership remains below 10% for 30 consecutive days. As a result, Equinox is no longer subject to early warning or insider reporting requirements regarding Versamet securities. The company stated that the holding was classified as an investment and that the transaction serves as a portfolio optimization and balance sheet strengthening measure.
Equinox Gold Corp. (EQX) divested its Versamet royalty for C$130 million, a transaction that removes a restrictive investor rights agreement and right of first offer, thereby granting the company greater strategic flexibility to manage its royalty portfolio. The deal does not alter the company’s core production profile, cost structure, or the pending merger with Orla Mining.
Equinox’s stock has declined from approximately $25 to $14, a drop driven by broader market rotation, compression in merger arbitrage, and near-term execution concerns rather than fundamental deterioration. The market has already priced in the Brazil sale and the Orla combination.
Equinox Gold Corp. operates producing gold mines in Canada, including Greenstone and Valentine, in the USA at Mesquite, and in Nicaragua at El Limón and La Libertad. The company also holds development assets at Castle Mountain in the USA and Los Filos in Mexico. In January 2026, Equinox sold its Brazil operations for $1.015 billion. The firm is merging with Orla Mining to create a North American producer with approximately 1.1 million ounces of annual gold production and roughly 23 million ounces of proven and probable reserves.