Toronto, Ontario--(Newsfile Corp. - June 9, 2021) - 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.

ABOUT OCIM

The OCIM group of privately held companies has a long and successful history as a Trader and Financier of Strategic Assets. Established in Paris in 1961, OCIM is headed by a third-generation member of the founding family. Besides its core historical business in Real Estate, OCIM has diversified into other strategic tangible assets such as coinage Precious Metals via its Geneva-based subsidiary. As a Merchant, OCIM trades physical metals across the full value chain, from producers to end users. As a Financier, OCIM invests in a wide variety of instruments and provides financing to the value chain with equity, debt, and alternative investments.

To learn more about OCIM visit www.ocim.eu

CONTACT

Miranda J. Werstiük
+1 647 299 1778
miranda.werstiuk@ocim.eu

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/87077