Equinox Gold (EQX) said a Brazilian court has halted the transfer of mineral rights tied to its $1 billion sale of gold assets to China's CMOC Group, following a legal challenge by a state-owned mining firm, Reuters reported Wednesday.

According to the report, the ruling backed CBPM, which leases the Bahia mineral resources included in the January deal, finding the transaction breached its lease and ordering the transfer of the rights suspended pending a March 30 conciliation hearing.

Equinox said it had completed the Bahia asset sale in compliance with the law, noting the ruling was not directed at the company but focused on the Santa Luz mine. The company added that it remains committed to constructive talks with the state to resolve any differences.

Equinox Gold did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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