Equinox Gold (EQX.US) will acquire Calibre Mining to become Canada's second-largest gold producer.

Equinox Gold (EQX.US) announced that it will acquire all issued and outstanding common shares of Calibre Mining under a court-approved plan of arrangement. Calibre shareholders will receive 0.31 shares of Equinox common stock for every share of Calibre held prior to the transaction. Equinox existing shareholders and former Calibre shareholders will own approximately 65% and 35% of the combined company, respectively. The implied value of the combined company is estimated at C$7.7 billion. The transaction is expected to create a diversified gold producer focused on the United States, with operating mines in five countries and anchored by two high-quality, long-life, low-cost gold mines in Canada. The companies stated that New Equinox Gold, with 100% ownership of Greenstone and Valentine, will become the second-largest gold producer in Canada. The combined company is expected to produce approximately 950,000 ounces of gold by 2025, excluding production from Valentine or Los Filos. Equinox president and CEO Greg Smith said: "This merger represents a transformative step forward for Equinox and Calibre, bringing together two complementary companies with strong production, growth potential, operating expertise and a shared commitment to responsible mining."