Calibre Mining's US$75M Private Placement: A Boost for Growth and Value Creation

Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) has announced the successful closing of a US$75 million private placement, issuing unsecured convertible notes to equinox gold corp. (TSX: EQX) (NYSE American: EQX), Vestcor, and Trinity Capital Partners. This strategic move strengthens Calibre's financial position and sets the stage for continued growth and value creation. Let's delve into the implications of this private placement and its potential impact on Calibre's future.



The private placement consists of US$75 million in unsecured convertible notes, bearing an annual interest rate of 5.5% and a five-year maturity. These notes are convertible into Calibre common shares at a price of C$4.25 per share, representing a 37.5% premium to the stock's 21 February 2025 closing price. This premium indicates that the investors, namely Equinox, Vestcor, and Trinity Capital Partners, have a strong belief in Calibre's future prospects and growth potential.

The funds raised from this private placement will be used to cover transaction expenses related to the merger with Equinox Gold and for general corporate purposes. This injection of capital will provide Calibre with the necessary resources to complete the merger and continue its operations and growth initiatives.

One of the key strategic objectives for Calibre Mining is the development of the Valentine Gold Mine in Newfoundland & Labrador, Canada. The additional cash from the private placement will support the ongoing development of this project, which is expected to significantly increase Calibre's gold production and create long-term value for shareholders. With Valentine fully operational, Calibre will transition into a robust, multi-asset, diversified mid-tier gold producer, with the potential to exceed the production levels outlined in the 2022 feasibility study.

The private placement also aligns with Calibre's overall investment philosophy, focusing on responsible operations and a disciplined approach to growth. By raising funds through this private placement, Calibre can ensure that it has the necessary capital to execute its strategic plans and continue delivering sustainable value for shareholders, local communities, and all stakeholders.

In conclusion, Calibre Mining's US$75 million private placement is a significant step forward for the company, strengthening its financial position and setting the stage for continued growth and value creation. With the funds raised, Calibre will be well-equipped to pursue its strategic objectives, including the development of the Valentine Gold Mine and the completion of the merger with Equinox Gold. As an investor, this private placement presents an attractive opportunity to participate in Calibre's growth story and potentially benefit from the company's future success.