Equinox Gold (EQX.US) will acquire Calibre Mining to create the second largest gold producer in Canada.

Equinox Gold (EQX.US) has announced that, pursuant to a court-approved arrangement plan, it will acquire all of the issued and outstanding common shares of Calibre Mining. Prior to the completion of the transaction, for each share of Calibre, shareholders will receive 0.31 shares of Equinox common stock. After the transaction, existing Equinox shareholders and former Calibre shareholders will hold approximately 65% and 35% of the merged company's shares, respectively. The implied market value of the merged company is estimated to be $7.7 billion Canadian dollars. The transaction is expected to create a diversified gold producer with a focus on the United States, operating mines in five countries, with two high-quality, long-life, low-cost gold mines in Canada as the cornerstones. The two companies stated that after acquiring 100% ownership of Greenstone and Valentine, New Equinox Gold will become the second largest gold producer in Canada. The merged company is expected to produce approximately 950,000 ounces of gold by 2025, not including the production from Valentine or Los Filos. Equinox President and CEO Greg Smith said, "This merger represents a transformational step forward for Equinox and Calibre, bringing together two complementary companies with strong production, growth potential, operational expertise, and a shared commitment to responsible mining."