Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX) and Calibre Mining (TSX:CXB,OTCQX:CXBMF) have entered into a definitive arrangement agreement to merge, creating a major diversified gold producer in the Americas.
The deal will see Equinox acquire all the outstanding common shares of Calibre in an all-stock transaction, forming a new entity that will continue operating under the Equinox name.
The merger will establish a gold producer with a presence across five countries, anchored by two key Canadian assets: the Greenstone gold mine in Ontario and the Valentine gold mine in Newfoundland and Labrador.
When at full capacity, these mines are expected to produce an average of 590,000 ounces of gold per year.
Overall, Equinox is anticipating production of approximately 950,000 ounces of gold in 2025, with the potential to exceed 1.2 million ounces annually as its cornerstone assets reach full capacity.
Under the terms of the agreement, Calibre shareholders will receive 0.31 Equinox shares for each Calibre share held.
Once the deal is complete, Equinox shareholders will own approximately 65 percent of the new entity, with former Calibre shareholders holding the remaining 35 percent. The new company’s expected market cap is C$7.7 billion.
Equinox CEO Greg Smith called the merger a “transformative step forward” for both companies, stating, “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.”
The new company will also benefit from the expertise of mining industry veterans, including Ross Beaty and Featherstone Capital’s Blayne Johnson and Doug Forster, all of whom will serve on the Equinox board of directors.
The announcement follows Equinox’s record-breaking financial and operational performance in 2024. The company sold 623,579 ounces of gold, generating US$1.5 billion in revenue and US$430 million in operating cashflow.
Results were driven in part by the successful ramp up of production at Greenstone, which achieved commercial production in November 2024 and contributed more than 111,700 ounces of gold in its first partial year of operation.
Additional details on the merger and the new entity’s financial outlook will be provided in Equinox’s upcoming audited consolidated financial statements, which are expected in mid-March.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
