OCIM
09 June 2021

OCIM to provide US$5 million in financing for Pilar Gold’s acquisition of the Pilar de Goiás gold mine

Ocim Precious Metals SA (“OCIM”) is pleased to announce it has signed a US$5-million alternative financing agreement in connection with Pilar Gold’s acquisition of the Pilar de Goiás gold mining complex in Brazil from Equinox Gold (TSX: EQX) (NYSE: EQX).

Privately held Canadian company Pilar Gold Inc. (“Pilar Gold”) has acquired the Pilar de Goiás mine from Equinox Gold for a total of US$38 million. Located in the state of Goiás in Brazil and operating since 2014, the Pilar de Goiás mining complex comprises two underground mines and a processing unit, producing nearly 40,000 ounces of gold per year, with the potential for 100,000 ounces. Equinox Gold has acquired a 9.9% stake in Pilar Gold and will receive 1% of revenues from future production at Pilar de Goiás.

To finance this landmark acquisition, Pilar Gold is relying on a combination of equity, vendor finance and alternative financing. As part of this package, OCIM is providing Pilar Gold with US$5 million of non-dilutive financing, repayable in gold bullion. In return, Pilar Gold will, for the next 12 months, deliver a pre-agreed quantity of gold from the Pilar mine to OCIM each month at a discount to the market’s spot price.

This financing allows Pilar Gold to acquire a high potential site already in production along with a world-class processing unit. This benchmark infrastructure is an engine for driving the company's expansion and positions it as a future major player for gold production in Brazil.

This transaction underscores the relevance of OCIM's offering as a partner supporting transformational transactions while providing a complementary alternative to traditional debt and equity financings.  It also demonstrates OCIM's ability to access major off-market opportunities by placing itself at the heart of the mining ecosystem and of a company's development,” explained Laurent Mathiot, CEO of OCIM.

ABOUT PILAR GOLD

Pilar Gold is a fast-growing Canadian gold company operating in Brazil. The business, which has acquired the benchmark Pilar de Goiás mining complex in the state of Goiás, currently operates two mines and a 4.000 tpd processing units. With this acquisition and others to come, the company aims to produce close to 200,000 ounces of gold per year by 2024 and to become a major player in the Brazilian gold sector within a few years. Pilar Gold, which employs an experienced team of approximately 1,000 people, is preparing for an IPO on the Toronto Stock Exchange in the course of 2021.

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