Equinox Gold- Calibre Mining Merge to Form Major Americas-Focused Gold Producer
Equinox Gold- Calibre Mining have announced a definitive agreement to merge, creating a diversified gold producer focused on the Americas. This all-stock transaction will see Equinox Gold acquiring all outstanding shares of Calibre Mining, forming a new entity known as “New Equinox Gold.”
Equinox Gold, Calibre Mining Shareholders to Benefit From Merger
Following the merger announcement, Equinox Gold- Calibre Mining shareholders are set to benefit from enhanced production capabilities and growth opportunities. Shareholders of Calibre Mining will receive 0.31 Equinox Gold common shares for each Calibre share held. Upon completion of the transaction, Equinox Gold shareholders will own approximately 65% of the combined company, while Calibre Mining shareholders will hold 35%.
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Production Growth and Expansion Plans
New Equinox Gold will operate across five countries, with its flagship Canadian assets including the Greenstone Mine in Ontario and the Valentine Gold Mine in Newfoundland and Labrador. The company is projected to produce approximately 950,000 ounces of gold in 2025, excluding contributions from the Valentine or Los Filos mines. Once the Greenstone and Valentine mines reach full capacity, Equinox Gold- Calibre Mining will have the potential to exceed 1.2 million ounces of annual gold production.
Regulatory Approvals and Expected Closing Date
The merger between Equinox Gold- Calibre Mining is subject to shareholder approval from Calibre Mining investors, with a special meeting expected before May 31, 2025. Additional regulatory approvals are also required, including Canadian and Mexican competition clearances and the listing of New Equinox Gold shares on the Toronto Stock Exchange (TSX) and New York Stock Exchange-A. If all conditions are met, the transaction is expected to close in the second quarter of 2025.
Strategic Vision and Leadership
The newly formed company will be led by Equinox Gold’s current President and CEO, Greg Smith, while Calibre Mining’s President and CEO, Darren Hall, will assume the role of President and Chief Operating Officer. Ross Beaty will continue as Chair of the Board of Directors. The leadership team is focused on maximizing growth, expanding mining operations, and delivering long-term shareholder value.
Financial Strength and Investment Plans
To support the transaction, Calibre Mining has secured $75 million in unsecured convertible notes from Equinox Gold, Vestcor, and Trinity Capital Partners. These notes, carrying a 5.5% annual interest rate, will mature in five years and can be converted into Calibre Mining shares at C$4.25 per share, representing a 37.5% premium to Calibre Mining’s February 21, 2025 closing price. The funds will be used to cover transaction-related expenses and general corporate purposes.
Equinox Gold- Calibre Mining’s merger marks a significant milestone in the mining industry, positioning the new entity as a top-tier Americas-focused gold producer. Shareholders from both companies stand to benefit from increased production, cash flow, and exposure to future growth opportunities. With record-high gold prices and an expanding production pipeline, Equinox Gold- Calibre Mining is well-positioned to capitalize on strong market conditions and drive long-term value creation.