Equinox Gold and Calibre Mining on Monday announced a definitive agreement for an at-market business combination that would create a new diversified gold producer in the Americas.
Under the arrangement, Equinox would acquire all issued and outstanding shares of Calibre, with the combined entity continuing under the name Equinox Gold.
The transaction would result in a company with a portfolio of operating mines across five countries, anchored by two significant Canadian gold projects – Greenstone in Ontario and Valentine in Newfoundland and Labrador.
Greenstone reached commercial production in November, while Valentine is nearing construction completion, with its first gold pour expected in mid-2025. When fully operational, these mines are projected to contribute 590 000 oz/y of gold, making New Equinox Gold the second-largest gold producer in Canada.
The merged entity is expected to produce about 950 000 oz of gold in 2025, excluding output from Valentine and Los Filos, with the potential to exceed 1.2-million ounces a year once both mines are at full capacity.
Further, the new Equinox would have a substantial mineral resource base and a pipeline of development and expansion projects to support sustainable growth.
Under the agreement, Calibre shareholders will receive 0.31 Equinox shares for each Calibre share held. Upon completion of the transaction, Equinox and Calibre shareholders will own 65% and 35%, respectively, of the combined company, which is estimated to have a market capitalisation of C$7.7-billion.
Upon closing of the transaction, management of the combined operations will include executives from both Equinox and Calibre, with Equinox’s current president and CEO, Greg Smith, remaining as CEO and Calibre’s current president and CEO, Darren Hall, joining management as president and COO of the new entity.
The board of directors will consist of ten directors, with Ross Beaty as chairperson, along with five additional directors from Equinox, including Smith, and four directors from Calibre, including Doug Forster and Blayne Johnson.
“Great companies are built on strong foundations and strong teams. The combination of Equinox and Calibre brings together 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,” commented Beaty.