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Highlights
- Equinox to acquire all outstanding shares of Calibre in a court-approved plan of arrangement.
- Combined company to produce 1.2 million ounces of gold annually at full capacity.
- The deal solidifies New Equinox Gold’s position as the second-largest gold producer in Canada.
Equinox Gold Corp. (TSX:EQX) (NYSE American: EQX) and Calibre Mining Corp. (TSX:CXB) (OTCQX:CXBMF) have entered into a definitive arrangement agreement, marking a transformative business combination for the two companies. The agreement will see Equinox acquire all outstanding shares of Calibre in an at-market transaction. This deal is set to elevate the combined entity, New Equinox Gold, to a leading position in the Americas' gold production sector. Following the completion of the transaction, the company will continue to operate under the Equinox Gold name.
The deal combines two complementary gold producers, each with strong operational records and a significant growth outlook. Equinox’s portfolio includes high-quality gold assets in Canada, while Calibre’s assets span a diverse set of operating mines across the Americas. The combined company will be a diversified gold producer with operations across five countries, including Canada, Nicaragua, and Brazil.
Strategic Benefits and Projected Growth
New Equinox Gold will have a robust portfolio, anchored by the Greenstone and Valentine gold mines. Greenstone, located in Ontario, commenced commercial production in November 2024, and Valentine, in Newfoundland & Labrador, is nearing completion with its first gold pour expected by mid-2025. Together, these mines are expected to produce approximately 590,000 ounces of gold annually when fully operational. These cornerstone assets will solidify New Equinox Gold’s position as the second-largest gold producer in Canada.
The combined entity will produce an estimated 950,000 ounces of gold in 2025, excluding production from the Valentine mine and Los Filos. Once Valentine and Greenstone reach full capacity, New Equinox Gold has the potential to produce more than 1.2 million ounces of gold per year, placing it among the top global gold producers.
Transaction Details
Under the terms of the agreement, Calibre shareholders will receive 0.31 common shares of Equinox for each share of Calibre held, ensuring a smooth transition and strong alignment between the two companies. Following the transaction's completion, Equinox shareholders will hold approximately 65% of the combined company, while Calibre shareholders will own about 35%.
The deal is expected to enhance the financial strength of New Equinox Gold, providing substantial free cash flow and a strong platform for further growth. With its enhanced scale and strategic assets, the company has the potential for significant re-rating within the sector, relative to its peers.
Industry-Leading Leadership
New Equinox Gold will be led by an experienced team with a proven track record in the mining sector. Ross Beaty, along with Blayne Johnson and Doug Forster of Featherstone Capital, will join the Board of Directors of the new company. Their extensive experience in creating shareholder value over multiple decades will be a key factor in the ongoing success of the combined company.
