Equinox Gold has agreed to acquire Calibre Mining in an at-market business combination, creating a gold production company with an estimated market capitalisation of C$7.7bn ($5.4bn).
The transaction, which is valued at C$2.56bn ($1.8bn), based on the companies’ last closing prices, will be executed through a court-approved plan of arrangement.
Under the terms of the definitive arrangement agreement, shareholders of Calibre Mining will receive 0.31 Equinox Gold common shares for each Calibre Mining share held.
Following the completion of the transaction, Equinox Gold’s existing shareholders will own approximately 65% of the combined entity. Former Calibre Mining shareholders will hold the remaining 35% on a fully diluted, in-the-money basis.
The newly created Americas-focused company will have operations across five countries.
The combined portfolio will be anchored by two major Canadian gold mines, namely the Greenstone Mine in Ontario and the Valentine Gold Mine in Newfoundland and Labrador.
The Greenstone Mine commenced commercial production in November 2024, while the Valentine Gold Mine is set to pour its first gold by mid-2025.
Once fully operational, these mines are expected to yield a combined annual production of 590,000 ounces of gold. This is expected to position Equinox Gold as Canada’s second-largest gold producer.
Calibre Mining president and CEO Darren Hall said: “The merger with Equinox provides combined shareholders a diversified gold production base with significant growth opportunities.
“The combination of two new, long-life, low-cost, open-pit gold mines, Valentine and Greenstone, will be the cornerstone of an exciting new major Canadian gold producer that will be positioned to generate substantial shareholder value.”
The newly formed entity is also projected to produce approximately 950,000 ounces of gold in 2025, excluding contributions from the Valentine Gold Mine and the Los Filos Mine.
Furthermore, the ramp-up of its assets is anticipated to bring the company’s production to more than 1.2 million ounces of gold per year.
The expanded portfolio will include a substantial reserve and resource base, along with a pipeline of development and exploration projects to support long-term growth.
Equinox Gold president and CEO Greg Smith said: “By combining our assets, teams, and financial strength, we are creating a leading Americas-focused gold producer with enhanced scale, resilience, and the ability to generate significant long-term value for our shareholders and stakeholders.”
Subject to shareholder and court approvals, along with regulatory clearance in Canada and Mexico as well as other closing conditions, the transaction is expected to be completed in Q2 2025.
