Companhia Baiana de Produção Mineral (CBPM) has asked the Court of Justice of the State of Bahia to immediately seize a lease area known as the Bahia Complex, according to a court document as reported by Bloomberg.
CBPM argues that Equinox was a leaseholder and not the owner of the concession, and therefore had no right to sell it without the express consent of the state-owned company.
“The Canadian company sold a mining right that did not belong to the company,” CBPM president Henrique Carballal told the news channel.
The injunction request specifically concerns the Bahia complex and does not cover other Brazilian assets involved in the transaction. Equinox announced last December that it had agreed to sell its Brazilian operations to Contemporary Amperex Technology (SZSE:300750,HKEX:3750) in a $1 billion deal expected to close in the current quarter.
Equinox said it has not received notice of a lawsuit. Executive vice president of capital markets Ryan King said the company is “confident that the sale of its Brazil operations 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 necessary, the company remains open to constructive discussions with the state to reach a mutually acceptable solution,” King added.
The legal challenge comes as Equinox concludes a “transformational” 2025.
The company reported full-year preliminary gold production of 922,827 ounces, including 856,908 ounces that met annual guidance of 785,000 to 915,000 ounces, plus 65,918 ounces from the Valentine, Los Filos and Castle Mountain locations. In the fourth quarter alone, Equinox produced a record 247,024 ounces of gold.
“2025 was a significant year of progress for Equinox Gold,” Hall said. “The merger with Caliber created a North American-focused gold producer anchored by two new long-lived Canadian mines.”
Hall acknowledged previous operational challenges at Greenstone, but said improvements were evident in the fourth quarter, when the mine produced more than 70,000 ounces, a 29 percent increase from the previous quarter.
Equinox has also reduced its debt by more than $1.1 billion since the second quarter of 2025. The company expects to produce between 700,000 and 800,000 ounces in 2026 and generate enough cash flow to pay off remaining debt this year.
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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
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