Equinox Gold and Calibre Mining Announce Merger: A New Major Player in the Canadian Gold Industry
On February 23, 2025, Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) and Calibre Mining Corp. (TSX: CXB, OTCQX: CXBMF) announced that they have entered into a definitive arrangement agreement for Equinox to acquire all the issued and outstanding common shares of Calibre in an at-market business combination. The Transaction, which will be carried out under a court-approved plan of arrangement, is expected to create a leading intermediate gold producer in Canada, named “New Equinox Gold.”
The Merger: A Closer Look
Equinox Gold, a mid-tier gold producer, will acquire Calibre Mining, a well-established explorer and developer of gold projects in Nevada, Canada, and Mexico. The Transaction values Calibre at approximately CAD 825 million, which represents a premium of around 36% to Calibre’s 20-day volume-weighted average price as of February 22, 2025. The combined company, New Equinox Gold, will continue to operate under the Equinox Gold Corp. name.
Impact on Shareholders
Calibre shareholders will receive 0.375 of a common share of Equinox Gold for each Calibre common share they own. This represents a significant premium and is expected to provide Calibre shareholders with exposure to a larger, more diversified gold producer. Equinox Gold shareholders will own approximately 60% of the combined entity, while Calibre shareholders will own approximately 40%.
Impact on the Gold Industry and the World
The merger of Equinox Gold and Calibre will result in the second-largest gold producer in Canada, with a production profile of approximately 1.2 million ounces of gold annually. This merger is expected to create a more robust and diversified company, with a larger resource base and increased exploration potential. The newly combined entity will also benefit from Calibre’s strong exploration portfolio and expertise in Nevada and Mexico.
What’s Next?
Both Equinox Gold and Calibre will host a conference call and webcast on Monday, February 24, 2025, at 7:30 am Eastern Time to discuss the Transaction in more detail. Shareholders of both companies are encouraged to attend and ask questions.
Conclusion
The merger of Equinox Gold and Calibre Mining is a significant development in the Canadian gold industry. The combined entity, New Equinox Gold, will be the second-largest gold producer in Canada, with a production profile of approximately 1.2 million ounces of gold annually. This merger is expected to create a more robust and diversified company, with a larger resource base and increased exploration potential. Shareholders of both companies stand to benefit from this Transaction, and further details will be discussed during the upcoming conference call and webcast.
- Equinox Gold to acquire Calibre Mining in a CAD 825 million deal
- Calibre shareholders to receive 0.375 of a common share of Equinox Gold for each Calibre common share
- New Equinox Gold to be the second-largest gold producer in Canada
- Combined entity to benefit from Calibre’s strong exploration portfolio and expertise in Nevada and Mexico
- Conference call and webcast scheduled for February 24, 2025, to discuss the Transaction
