Wedoany.com Report-Feb 25, Equinox Gold Corp. has entered into an agreement to acquire Calibre Mining Corp. through an all-stock transaction valued at $2.6 billion (US$1.8 billion). This deal will enhance Equinox’s gold production capacity in the United States and Nicaragua. The two companies announced in a statement late Sunday that, once combined, they are projected to become Canada’s second-largest gold producer.

Under the terms of the agreement, Calibre shareholders will receive 0.31 of an Equinox share for each share they hold. Following the announcement, Equinox’s stock increased by 0.7%, reaching $6.87 during pre-market trading in New York at 8:51 a.m. The acquisition aligns with a series of recent transactions in the gold sector, such as Gold Fields Ltd.’s takeover of Osisko Mining Inc. and AngloGold Ashanti Ltd.’s purchase of Centamin Plc, reflecting a trend driven by strong gold prices.

Gold miners have been benefiting from significant earnings due to a surge in bullion prices, which have climbed to record levels over the past year. Currently, gold prices are near $3,000 per ounce, supporting the financial momentum behind such corporate moves. The Equinox-Calibre deal is poised to capitalize on this favorable market environment, expanding the company’s operational footprint and output.

Equinox is supported in this transaction by financial advisers BMO Capital Markets and GenCap Mining Advisory, with legal counsel provided by Blake, Cassels & Graydon LLP. Calibre, on its part, is advised by Trinity Advisors Corp. and Canaccord Genuity Corp. for financial matters, and Cassels Brock & Blackwell LLP serves as its legal adviser. These teams are facilitating the process to ensure a smooth integration of the two firms.

The merger is expected to strengthen Equinox’s position in the global gold market, leveraging Calibre’s assets to boost production. With gold maintaining high value, the combined entity aims to enhance shareholder returns and operational scale. The deal’s completion will depend on standard regulatory approvals and shareholder consent, with both companies working toward finalizing the transaction efficiently.