Author: Tiash saha

Canadian miner Equinox Gold has entered a definitive arrangement agreement with Calibre Mining for an at-market business combination, with Equinox acquiring all issued and outstanding common shares of Calibre.

The resulting entity, New Equinox Gold, will be an Americas-focused diversified gold producer with an estimated market capitalisation of C$7.7bn.

The combined company’s operations will span five countries, including two Canadian gold mines, Greenstone and Valentine.

Post-transaction, Equinox and Calibre shareholders will own approximately 65% and 35% of New Equinox Gold, respectively.

Calibre shareholders will receive 0.31 Equinox common shares for each Calibre share held.

The merger brings together a vast reserve of mineral resources and a “highly prospective” pipeline of development, expansion and exploration projects for sustainable growth.

New Equinox Gold is projected to produce around 950,000oz of gold in 2025, excluding contributions from the Valentine or Los Filos mines.

With the Greenstone and Valentine mines at full capacity, the combined company could exceed 1.2 million ounces (moz) of gold annually.

Calibre 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. I look forward to working with the combined team to continue Calibre’s track record of superior execution and delivering on our commitments.”

The transaction requires approval from Calibre’s shareholders, with a special meeting anticipated before 31 May 2025.

It also needs regulatory approvals, including Canadian and Mexican competition authorisations and the listing of new Equinox shares on the Toronto Stock Exchange (TSX) and New York Stock Exchange-A.

Subject to conditions being met, the merger is expected to close in the second quarter of 2025.

Shareholders of both companies stand to gain from the merger, with enhanced production, cash flow and exposure to growth opportunities.

Simultaneously, Calibre has entered into subscription agreements to issue $75m in unsecured convertible notes to Equinox, Vestcor and Trinity Capital Partners.

These notes will have a 5.5% annual interest rate and a five-year maturity, and are convertible into Calibre common shares at C$4.25 per share, a 37.5% premium to the stock’s 21 February 2025 closing price.

The funds raised will cover transaction expenses and general corporate purposes.

The private placement is expected to close by 4 March 2025, pending TSX approval.

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West African gold producer Orezone Gold has announced a bought deal offering with financial services company Canaccord Genuity, acting as the sole underwriter and bookrunner, to raise C$35m ($24.5m).

Under the agreement, Canaccord has committed to purchasing 42,683,000 common shares of Orezone for C$0.82 per share.

Orezone will also grant an option for 6,402,450 shares to Canaccord, which could raise additional proceeds of up to C$5.25m.

The proceeds will fund the development of the stage two hard rock expansion and the exploration of the Bomboré Gold Mine in Burkina Faso, West Africa. The funds will also support working capital and general corporate purposes.

The Bomboré mine’s processing complex includes a six million tonnes per annum (mtpa) oxide plant.

The expansion of the hard rock plant at the mine will further boost gold production.

The company forecasts an optimised gold production profile of 220,000–250,000oz per year by late 2026, with preliminary cost estimates for stage two ranging between $90m and $95m.

The stage two expansion is scheduled to commence in the second half of 2025 and follows the ongoing stage one expansion that is scheduled to achieve first gold in the fourth quarter of 2025.

Stage two will enhance the hard rock plant’s throughput to 5mtpa, with the addition of new processing units within the stage one footprint.

The offering is expected to close around 13 March 2025, subject to regulatory approvals, including from the Toronto Stock Exchange (TSX).

The shares will be made available in Canada, certain offshore jurisdictions, and the US via private placement, adhering to the US Securities Act’s exemption requirements.

In addition to the offering, Orezone is planning a secondary listing on the Australian Securities Exchange (ASX) to attract more investors and enhance its capital markets profile.

This listing is targeted for mid-2025, contingent on market conditions and ASX listing requirements.

The ASX secondary listing will supplement the company’s primary listing on the TSX, aiming to enhance trading liquidity and attract a broader base of sophisticated investors including specialised mining-focused funds.

Orezone president and CEO Patrick Downey said: “Orezone is excited to be advancing these transformational initiatives during this period of record high gold prices. We believe that an acceleration of the Stage II hard rock expansion to an overall production profile of 220,000–250,000oz per year will serve to maximise free cash flow in the coming years, positioning Orezone with a cornerstone asset from which to diversify and grow its production base.

“This strategic goal will be complemented by our plans to list on the ASX, which is expected to enhance the company’s trading liquidity and promote better access to investment capital.”

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West African gold producer Orezone Gold has announced a bought deal offering with financial services company Canaccord Genuity, acting as the sole underwriter and bookrunner, to raise C$35m ($24.5m).

Under the agreement, Canaccord has committed to purchasing 42,683,000 common shares of Orezone for C$0.82 per share.

Orezone will also grant an option for 6,402,450 shares to Canaccord, which could raise additional proceeds of up to C$5.25m.

The proceeds will fund the development of the stage two hard rock expansion and the exploration of the Bomboré Gold Mine in Burkina Faso, West Africa. The funds will also support working capital and general corporate purposes.

The Bomboré mine’s processing complex includes a six million tonnes per annum (mtpa) oxide plant.

The expansion of the hard rock plant at the mine will further boost gold production.

The company forecasts an optimised gold production profile of 220,000–250,000oz per year by late 2026, with preliminary cost estimates for stage two ranging between $90m and $95m.

The stage two expansion is scheduled to commence in the second half of 2025 and follows the ongoing stage one expansion that is scheduled to achieve first gold in the fourth quarter of 2025.

Stage two will enhance the hard rock plant’s throughput to 5mtpa, with the addition of new processing units within the stage one footprint.

The offering is expected to close around 13 March 2025, subject to regulatory approvals, including from the Toronto Stock Exchange (TSX).

The shares will be made available in Canada, certain offshore jurisdictions, and the US via private placement, adhering to the US Securities Act’s exemption requirements.

In addition to the offering, Orezone is planning a secondary listing on the Australian Securities Exchange (ASX) to attract more investors and enhance its capital markets profile.

This listing is targeted for mid-2025, contingent on market conditions and ASX listing requirements.

The ASX secondary listing will supplement the company’s primary listing on the TSX, aiming to enhance trading liquidity and attract a broader base of sophisticated investors including specialised mining-focused funds.

Orezone president and CEO Patrick Downey said: “Orezone is excited to be advancing these transformational initiatives during this period of record high gold prices. We believe that an acceleration of the Stage II hard rock expansion to an overall production profile of 220,000–250,000oz per year will serve to maximise free cash flow in the coming years, positioning Orezone with a cornerstone asset from which to diversify and grow its production base.

“This strategic goal will be complemented by our plans to list on the ASX, which is expected to enhance the company’s trading liquidity and promote better access to investment capital.”

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SilverCrest Metals has received clearance from Mexico’s Comisión Federal de Competencia Económica (COFECE) for its acquisition by Coeur Mining in a deal with an equity value of approximately $1.7bn (C$2.45bn).

SilverCrest shareholders will receive 1.6022 Coeur shares for each SilverCrest share held. The exchange ratio values each SilverCrest share at $11.34.

Post-acquisition, Coeur and SilverCrest shareholders will own approximately 63% and 37% of the combined entity, respectively.

SilverCrest CEO N. Eric Fier said: “We are pleased to have completed this important milestone in our path to build a leading global silver company through our transaction with Coeur.

“The approval from COFECE is a key regulatory approval for SilverCrest and Coeur and represents a significant step towards the successful completion of the arrangement.”

The definitive agreement for the acquisition was signed in October 2024, with the combined company set to benefit from increased production, diversification and growth opportunities.

SilverCrest’s Las Chispas underground mine in Sonora, Mexico, adds value to Coeur’s portfolio. It ranks among the world’s “highest-grade, lowest-cost and highest-margin” silver and gold operations.

The Las Chispas mine, combined with increasing silver production from Coeur’s expanded Rochester mine in Nevada, US, and Palmarejo mine in Mexico, is expected to boost the combined company’s silver production to approximately 21 million ounces (oz) this year.

Additionally, the merged company is forecast to produce around 432,000oz of gold in 2025.

The transaction benefits will also include an immediate boost to Coeur’s free cash flow and a 40% expected reduction in its leverage ratio.

Subject to necessary approvals, the transaction will result in SilverCrest delisting from the Toronto Stock Exchange and the NYSE American.

The deal is expected to close on 14 February 2025 upon receiving the approval of SilverCrest’s securityholders at a meeting scheduled on 6 February 2025 and the approval of the court.

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Canadian exploration company Power Nickel is expected to complete a plan of arrangement today regarding the spin-out of its Golden Ivan Property and certain Chilean assets and liabilities to its wholly owned subsidiary, Chilean Metals (Spinco).

For each common share held, Power Nickel shareholders will receive one new common share of the company and 0.05 of a Spinco common share.

The company’s outstanding options will also be adjusted, providing option-holders new options to purchase shares in both Power Nickel and Spinco.

This spin-out arrangement allows shareholders to have stakes in two distinct entities.

Power Nickel will focus on developing the Nisk project, while Spinco will advance the Golden Ivan property and the Chilean projects.

Spinco will also take over interests in the Zulema, Tierra de Oro, Palo Negro, Hornitos and Tabaco projects in Chile, with Power Nickel retaining its royalty interest in the Chilean Copaquire project.

Additionally, the NISK property features an extensive land area spanning 20km in strike length and includes multiple high-grade intercepts.

The 2025 winter drill campaign on the NISK project with hole PN-24-96 began in January 2025. This hole will test the depth extension along the trend of the Lion zone, building on successful 2024 drilling that uncovered high-grade copper and precious metals.

The Golden Ivan property encompasses 13 mineral claims over 797 hectares in Terrace, British Columbia.

The special resolution for this arrangement was approved by shareholders at their Annual General and Special Meeting in December last year, following a final order from the Supreme Court of British Columbia on 27 November 2024.

Endeavor Trust Corporation, acting as the depositary, has facilitated the arrangement.

The new Power Nickel shares will continue to be traded on the TSX Venture Exchange in Canada, the OTC Market in the US and the Frankfurt Stock Exchange in Germany.

Spinco shares will not be listed on any stock exchange post-arrangement. Spinco is a reporting issuer in British Columbia and Alberta, adhering to continuous disclosure obligations under Canadian securities laws.

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