Underwriters from the Bank of Montreal (TSX: BMO) subsidiary BMO Capital Markets have agreed to purchase 59.6 million shares of Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) through a C$100 million bought deal financing.
The deal, announced Tuesday, will see that BMO gets each common share at C$1.68 apiece. The bank will have the option to purchase an additional C$15 million worth of stock within 30 days if need be.
This essentially means that if there is a high demand for the Calibre stock being re-sold by BMO and its price shoots up on the markets, the financial institution will be able to buy about 9 million more at that same price. The arrangement is expected to be finalized in mid-April.
Proceeds from the financing will be put towards Calibre’s Pan mine in Nevada, the El Limon and La Libertad operations in Nicaragua and the Valentine gold project in Newfoundland. The monies will also be used for general corporate expenses.
The United States and Central America projects have been steady contributors to Calibre’s gold production. Valentine will start producing substantial quantities of the commodity early next year. Calibre solidified its status as a mid-tier producer through its acquisition of the Newfoundland operation in early 2023.
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Calibre appoints new Canadian leaders; gets added to VanEck Gold ETF
The mid-tier miner revealed that it was appointing a new vice president of Canadian operations and process plant manager for Valentine on Monday. Jason Cyr will be taking the former position while André Morneau steps into the latter.
“Jason brings a wealth of leadership and operational expertise to the business,” chief executive Darren Hall said. “André’s extensive processing leadership roles will be invaluable in optimizing our plant operations.”
Furthermore, Calibre has been added to the list of companies on the VanEck Vectors Gold Miners ETF (NYSE: GDX). The VanEck firm launched its exchange-traded fund business in 2006 along with the first gold mining ETF in the United States.
“I am very pleased to be included in the GDX Index [VanEck] which reflects our successful growth and provides Calibre investors improved liquidity, trading flexibility and a higher profile,” Hall added.
Calibre recently celebrated its third year of compliance with the World Gold Council’s responsible mining principles.
The company’s acquisition of the Valentine mine in January was described by Calibre’s investor relations and corporate development manager Ryan King as “completely transformational from an investor perspective.”
Calibre Mining is a sponsor of Mugglehead news coverage
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