Equinox merging with Calibre Mining to create Canada’s second-largest gold producer
Momentum in the gold market is not just attracting investor attention—it’s also driving new activity in the mining sector, with another friendly merger between equals.
On Sunday, Equinox Gold and Calibre Mining announced that they were merging to create a major Americas-focused gold producer. The new Equinox company would become Canada’s second-largest gold producer.
Under the agreement, Equinox will acquire all issued and outstanding common shares of Calibre through a court-approved plan of arrangement. Under the terms of the agreement, Calibre shareholders will receive 0.31 Equinox common shares for each Calibre common share held immediately. Equinox stated that the implied market capitalization of the combined company is estimated at C$7.7 billion.
The merger will create a diversified gold producer with a portfolio of mines in five countries across the Americas, anchored by two high-quality, long-life, low-cost Canadian gold mines: the Greenstone Mine in Ontario and the Valentine Gold Mine in Newfoundland & Labrador.
Valentine is still under construction and is expected to see its first gold pour in mid-2025. Equinox noted that collectively, these two cornerstone assets are expected to produce an average of 590,000 ounces of gold per year once operating at full capacity.
“This merger represents a transformative step forward for both Equinox and Calibre, bringing together two complementary companies with strong production, growth potential, operational expertise, and a shared commitment to responsible mining. 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,” said Greg Smith, President and Chief Executive Officer of Equinox.
“The merger with Equinox provides combined shareholders with a diversified gold production base and significant growth opportunities. The combination of two new, long-life, low-cost, open-pit gold mines—Valentine and Greenstone—will form the cornerstone of an exciting new major Canadian gold producer, well-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,” said Darren Hall, President and Chief Executive Officer of Calibre.
Equinox stated that it will benefit from the expertise and successful track records of industry leaders Ross Beaty, Blayne Johnson, and Doug Forster from Featherstone Capital. All three have created substantial shareholder value over multiple decades in the mining sector and will serve on the Board of Directors of New Equinox Gold.
“Great companies are built on strong foundations and strong teams. The combination of Equinox and Calibre unites two new Canadian cornerstone gold mines—Greenstone and Valentine—a portfolio of operating gold mines in the Americas, and two excellent operating teams to create a gold mining powerhouse. With improved scale, diversification, and financial strength, New Equinox Gold will be well-positioned to deliver long-term value to its shareholders. I’m really excited about our future as a great new major gold mining company,” said Beaty.
“Positioned in Canada’s top gold regions, this combination transforms New Equinox Gold into the country’s second-largest gold producer. With a strong portfolio of highly profitable and prospective assets across the United States, Mexico, Nicaragua, and Brazil, the company is well-positioned for long-term growth and sustained shareholder value creation. Doug and I look forward to continuing as directors and shareholders, working closely with Ross and the combined Equinox-Calibre team to build on Calibre’s strong track record of operational excellence and execution for its shareholders,” said Johnson.
Source: https://www.kitco.com/