Equus Mining Limited (ASX:EQE) agreed to acquire CERRO BAYO PROJECT from Mandalay Resources Corporation (TSX:MND) and others on October 11, 2021. CERRO BAYO PROJECT is owned 93.1271 by Mandalay and the rest by other corporation. Equus will acquire the Cerro Bayo mine, including its mining properties, resources and mine infrastructure as well as a 1,500 tonnes per day processing plant, in exchange for 19% of Equus' share capital and a 2.25% net smelter royalty on production from the Cerro Bayo mining claims once the mine has produced at least 50,000 ounces of gold equivalent, subject to a re-purchase option in favour of Equus. Equus will also assume 50% of approved site closure costs at Cerro Bayo, with Mandalay responsible for the remaining 50%. Under the terms no upfront cash consideration will paid. As part of this transaction Equus plans to consolidate its issued capital on a 1:20 basis. Equus will appoint the Mandalay Corp Costerfield Mine General Manager Ryan Austerberry to the Board of Equus as a non-executive director representing Mandalay. The transaction was approved by shareholders of Equus on November 25, 2021. As of September 30, 2021, Mandalay Resources Corporation is holding this asset as held for sale.

Equus Mining Limited (ASX:EQE) completed the acquisition of CERRO BAYO PROJECT from Mandalay Resources Corporation (TSX:MND) on December 1, 2021. Equus issued 587,502,438 ordinary shares to Mandalay.