Calibre securityholders give assent for Equinox Gold merger
They will have a 39% stake once Equinox completes the takeover
Rowan Dunne
More than 75 per cent of Calibre Mining Corp TSECXB OTCMKTSCXBMF FRAWCLA stakeholders just voted in favour of a merger with Equinox Gold Corp TSEEQX NYSEAMERICANEQX FRA1LRC. The proposed deal was first announced in February.
Now, pending approval from the Supreme Court of British Columbia in a meeting on May 6, the NYSE American Exchange and Mexican regulators, Equinox’s takeover of Calibre is slated to be finalized by the end of June.
Pursuant to an amended merger agreement revealed on Apr. 23, Equinox will hold a 61 per cent stake in the combined company “New Equinox Gold” while Calibre retains a 39 per cent interest.
Shareholders will receive 0.35 of an Equinox Gold share for each Calibre stock held. This exchange ratio represents a 10 per cent premium on the price Calibre shares were trading for on the TSX before the deal was first announced.
“In the current mining investment environment, bigger has a lot of benefits and this deal will probably earn many of those benefits,” Rua Gold Inc CVERUA OTCMKTSNZAUF FRAX9R CEO, Robert Eckford, said when the takeover was first proposed. “Great work by both companies as they move to the bigger leagues.”
The numbers look good, don’t you think? This is how it all stacks up when we combine Calibre Gold with Equinox Gold. And the results are pretty impressive! https://t.co/VZkjskEE8u#CalibreMining #GoldMining #Gold #Silver #EquinoxGold #Merger pic.twitter.com/qlscTgMqoM
Post by @CalibreMiningCo on X →Read more: Calibre Mining shareholders can get 4% higher stake once Equinox Gold merger is finalized
Merger will create Canadian gold powerhouse
It will position New Equinox in spot number two on the list of Canada’s top gold producers. As the price of the precious metal is at historic heights and continues to ascend, this stature should attract additional investors.
Agnico Eagle Mines Ltd TSEAEM NYSEAEM FRAAE9 is currently at the top of the list and Alamos Gold Inc. TSEAGI NYSEAGI will get pushed down to third place.
Between the Greenstone gold mine in Ontario and the promising Valentine project in Newfoundland, the gold major will churn out about 590,000 Canadian gold ounces per annum while benefitting from a diverse array of mining operations throughout the Americas.
The company will capitalize on the mining know-how and operational insight of Calibre chief executive Darren Hall and Equinox Gold CEO Greg Smith’s financial expertise. Hall will serve as President and Chief Operating Officer of New Equinox Gold.
It will have a market capitalization of approximately C$7.7 billion
Read more: Calibre Mining helps bring clean drinking water to thousands of Nicaraguans
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