By Jamie Hyland
In a landmark deal that will reshape the gold mining landscape, Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) and Calibre Mining Corp. (TSX: CXB, OTCQX: CXBMF) have announced a definitive arrangement agreement to merge in an at-market business combination. The newly formed entity, “New Equinox Gold,” will become one of the largest Americas-focused gold producers, boasting a diverse portfolio of operating mines and development projects spanning five countries.
The strategic rationale behind the transaction is clear: increased scale, operational synergies, and a stronger financial position to capitalize on record-high gold prices. With 100% ownership of two of Canada’s newest, long-life gold mines—Greenstone and Valentine—New Equinox Gold is set to become the second-largest gold producer in Canada.
“This merger represents a transformative step forward,” said Greg Smith, President and CEO of Equinox. “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.”
A New Gold Mining Powerhouse
With the Greenstone Mine in Ontario achieving commercial production in late 2024, and Valentine Gold Mine in Newfoundland & Labrador set to pour its first gold in mid-2025, New Equinox Gold is positioned to produce an estimated 950,000 ounces of gold in 2025. As both Greenstone and Valentine ramp up, the company is expected to exceed 1.2 million ounces of annual production, cementing its position as a top-tier gold producer.
“The merger with Equinox provides our shareholders with exposure to a diversified gold production base and significant growth opportunities,” noted Darren Hall, CEO of Calibre. “Valentine and Greenstone will be the cornerstone of an exciting new major Canadian gold producer, delivering substantial value.”
Key Benefits of the Transaction
This merger is expected to unlock substantial benefits for both Equinox and Calibre shareholders, including:
Increased Scale & Diversification – A geographically diversified portfolio of assets in Canada, the U.S., Mexico, Nicaragua, and Brazil.
Substantial Free Cash Flow Generation – Leveraging record-high gold prices to quickly deleverage and reinvest in growth.
Enhanced Growth Profile – Ramp-up of Valentine and further expansion projects offer low-risk, sustainable production increases.
Significant Resource Base – Large mineral reserves and exploration potential across multiple jurisdictions.
Strengthened Leadership Team – Proven track record of shareholder value creation with industry leaders Ross Beaty, Blayne Johnson, and Doug Forster on the Board of Directors.
“Great companies are built on strong foundations and strong teams,” said Ross Beaty, Chair of Equinox Gold. “This combination brings together two brand-new Canadian cornerstone gold mines, a portfolio of high-quality assets, and two excellent operating teams to create a gold mining powerhouse.”
Merger Structure & Shareholder Impact
Under the terms of the arrangement agreement, Calibre shareholders will receive 0.31 Equinox common shares for each Calibre share held. Post-transaction, the ownership breakdown of New Equinox Gold will be:
- 65% owned by existing Equinox shareholders
- 35% owned by former Calibre shareholders
The implied market capitalization of the combined company is estimated at C$7.7 billion, positioning it favorably against industry peers.
Leadership & Board Composition
New Equinox Gold will be led by a blended executive team, ensuring continuity and strategic alignment:
- Greg Smith (Equinox) will remain as CEO.
- Darren Hall (Calibre) will take on the role of President and COO.
- Ross Beaty will continue as Chair of the Board.
- The Board of Directors will comprise six members from Equinox and four from Calibre, including Doug Forster and Blayne Johnson of Featherstone Capital.
“This merger transforms New Equinox Gold into Canada’s second-largest gold producer,” remarked Blayne Johnson, Chair of Calibre. “With two brand-new, high-quality, long-life mines and a strong pipeline of projects, the company is well-positioned for long-term growth.”
Regulatory Approvals & Timeline
The transaction is subject to approval by:
✔ Calibre shareholders (requiring a two-thirds majority)
✔ Equinox shareholders (requiring a simple majority)
✔ Canadian and Mexican regulatory bodies
The transaction is expected to close in Q2 2025, following court approvals and customary closing conditions.
Both companies’ boards have unanimously approved the merger, with financial fairness opinions provided by BMO Capital Markets (for Equinox) and National Bank Financial & Canaccord Genuity (for Calibre).
Strategic Financial Impact
As part of the merger, Calibre has secured a US$75 million convertible note financing with Equinox, Vestcor Inc., and Trinity Capital Partners. This financing will support:
📌 Transaction-related expenses
📌 General corporate purposes
The convertible notes bear a 5.5% interest rate and a five-year maturity, with conversion options at a 37.5% premium to Calibre’s share price.
Investor & Market Sentiment
The mining community has reacted positively to the transaction, viewing it as a strategic move that strengthens both companies’ competitive positioning. Analysts highlight that New Equinox Gold will benefit from economies of scale, enhanced operational efficiencies, and a stronger capital markets profile.
“This merger could result in a significant re-rate of New Equinox Gold’s valuation, making it an attractive option for institutional investors seeking exposure to a low-risk, high-growth gold producer,” said a senior mining analyst.
Final Thoughts
The Equinox-Calibre merger is a game-changing deal for the gold mining sector, creating an Americas-focused gold leader with a strong foundation for future growth. With two new cornerstone mines, enhanced free cash flow, and a compelling growth pipeline, New Equinox Gold is poised for long-term success.
“This is a defining moment for both companies and our shareholders,” concluded Greg Smith. “We are building something truly special—a company with scale, diversification, and a clear pathway to sustainable, long-term value creation.”
For further details, visit:
🌐 www.equinoxgold.com | 🌐 www.calibremining.com
