Pilar Gold Inc. Announces Successful Debt Restructuring and Planned Restart of Operations in Brazil

Pilar Gold secures debt restructuring, cutting liabilities 75%, and sets stage for restarting gold production in Brazil.

CALGARY, AB, CANADA, August 26, 2025 /EINPresswire.com/ -- Pilar Gold Inc. (“Pilar”) is pleased to announce that its Brazilian subsidiary, Pilar de Goiás Desenvolvimento Mineral Ltda. (“PGDM”), has reached a landmark agreement with creditors on supportive terms, clearing the path for an immediate restart of gold production at our PGDM complex in Goiás State, Brazil.

At the final creditors’ meeting held on June 12, 2025, PGDM’s proposed repayment plan received overwhelming approval. This follows PGDM’s entry into judicial recovery (Recuperação Judicial) in September 2024, after production stoppages and reduced working capital forced a temporary suspension of mining operations.

RESTRUCTURING HIGHLIGHTS

• Debt reduction: PGDM’s liabilities reduced by approximately 75%.
• Payment moratorium: Manageable cash outflows for creditor repayments for the next four years, providing a clear runway for recapitalisation and production restart.
• Equinox Gold settlement: Pilar has reached an agreement with Equinox Gold Corp. (“Equinox”) to fully settle outstanding liabilities, terminate the security agreement, and position PGDM to access future debt financing for long-term growth.

Prior to this settlement, Pilar and PGDM owed Equinox approximately US$23 million. Under the agreement, Pilar will repay the balance with a 75% haircut, amortised between years 4–10, at an estimated 2.5% per annum interest. Pilar also retains the option to retire the debt earlier, before year 4, at an additional variable discount. Pilar extends its thanks to Equinox Gold’s management for their constructive support throughout this process.

The repayment plan remains subject to formal ratification by the court, which is expected in the coming weeks. The decision has no impact on Pilar Gold Inc. or its shareholders.

CEO COMMENT

Jeremy Gray, CEO of Pilar Gold, stated:
“This agreement marks a turning point for PGDM, enabling us to restart operations, restore employment in Itapaci and the surrounding district, and return PGDM to profitability. The mine was previously cash-flow positive at gold prices below US$2,000/oz. At today’s prices, we expect PGDM to generate substantial margins. On behalf of our team, I would like to thank our creditors, suppliers, employees, shareholders, and stakeholders for their patience and support during this challenging period. We are excited about the future and committed to building long-term value.”

ABOUT PILAR GOLD INC.

Founded in May 2019, Pilar Gold Inc. is a Canadian gold producer focused on Brazil. From April 2021 to April 2024, the Company successfully operated the Pilar Mine in Goiás State. Although operations were suspended in April 2024 due to essential infrastructure work, this challenge ultimately paved the way for a successful restructuring that reduced liabilities, streamlined the cost base, and now positions Pilar to restart production on stronger, more sustainable footing.

Pilar Gold is led by a management team with a proven track record of acquiring, financing, and restarting gold operations globally. The same group has founded and advanced multiple successful companies, including Laiva Gold in Finland, Tucano Gold in Brazil, and Gold Road in Arizona. This breadth of experience underpins Pilar’s strategy and provides strong confidence in the Company’s ability to create value in a rising gold price environment.

See more information on Pilar Gold here: https://www.pilargold.com/pilargold-equity-raise-rn?SQF_LEAD_SOURCE=pr

Edward Balme
Pilar Gold Inc
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