Equinox Gold Corp. (TSE: EQX) (NYSE American: EQX) closed down operations permanently at its Los Filos Mine in Guerrero, Mexico.
The land access agreement with the community of Carrizalillo expired on March 31, 2025, which influenced the decision.
Equinox Gold must secure long-term agreements with all three local communities to maintain the economic and investment conditions necessary for continued operations at the Los Filos Mine. These agreements are also crucial for constructing a proposed 10,000-tonne-per-day carbon-in-leach processing plant to improve gold recoveries from higher-grade ore.
Since November 2023, Equinox Gold has engaged in collaborative discussions with the three communities that host the mine. In January, the company reached a consensus on terms and subsequently and signed agreements with the Mezcala and Xochipala communities. However, Carrizalillo has not yet signed a new long-term agreement with the company.
Equinox Gold has excluded any production from the Los Filos Mine in its 2025 production guidance.
The community has raised concerns about environmental and health impacts, including water contamination and loss of agricultural land.
The Los Filos Mine Complex in Guerrero, Mexico, includes three open pits and two underground mines.
Equinox Gold originally acquired it in 2020 and planned expansion, including a carbon-in-leach (CIL) plant, which remains unapproved. In 2024, production reached 170,369 ounces at an all-in sustaining cost of $2,185 per ounce. Operations at Bermejal underground were suspended in 2023 to improve efficiency.
Equinox Gold is a Canadian gold producer with a diverse portfolio of assets in North America, South America, and Mexico. The company focuses on sustainable production and expanding its operations to increase growth.
Read more: Calibre Mining beats updated gold production guidance with 242,487 ounces
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Merger aims to create diversified major gold producer
In February 2025, Equinox announced an agreement to acquire Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF)in an all-stock transaction valued at approximately CAD$2.6 billion.
This merger aims to create a major diversified gold producer in the Americas, with the combined company projected to produce over 1.2 million ounces of gold annually from a portfolio of mines across five countries. The transaction is expected to close by the second quarter of 2025, subject to shareholder and regulatory approvals.
Calibre is a Canadian-listed, mid-tier gold producer with operations in Nicaragua, Nevada, and Newfoundland.
In Nicaragua, Calibre operates the Libertad and Limon gold mines, contributing significantly to its production profile.
In Nevada, the company holds interests in the Pan and Gold Rock projects, enhancing its presence in the U.S. gold mining sector.
Additionally, Calibre has exploration activities in Newfoundland, Canada, aiming to expand its resource base.
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