Equinox Gold Buys Calibre Mining For $1.8 Billion, Creating Canada's Second-Largest Gold Producer

On Sunday, Equinox Gold EQX announced an all-stock deal to acquire Calibre Mining CXBMF, valued at $1.8 billion, creating Canada's second-largest gold producer.

"This merger represents a transformative step forward for both Equinox and Calibre, bringing together two complementary companies with strong production, growth potential, operational expertise, and a shared commitment to responsible mining," Equinox President and CEO Greg Smith said in an announcement.

Under the terms of the agreement, Calibre shareholders will receive 0.31 of an Equinox share for each Calibre share held. The deal will result in a company with nine producing mines, one mine under construction, and five additional projects. Equinox's Greenstone mine in Ontario and Calibre's Valentine gold mine in Newfoundland & Labrador will be the new company's cornerstone assets.

Smith will remain the CEO, while Calibre's CEO, Darren Hall, will take on the role of President and COO. The board of directors will comprise ten members, with mining industry veteran Ross Beaty as chair. Equinox Gold will continue to operate under its existing name and remain headquartered in Vancouver, Canada.

"The combination of Equinox and Calibre brings together two new Canadian cornerstone gold mines—Greenstone and Valentine—alongside a strong portfolio of operating mines in the Americas, creating a gold mining powerhouse," said Beaty, a 2018 inductee into the Canadian Mining Hall of Fame.

Once Greenstone and Valentine reach full capacity, post-merger production is expected to exceed 1.2 million ounces annually. The former achieved commercial production in November 2024, with an expected output of 390,000 ounces annually for its first five years, while the latter is nearing completion and will start producing by mid-2025.

The company will also benefit from substantial free cash flow and a strong growth pipeline, including Mexico, Brazil, Nevada, and Nicaragua assets.

Rising gold prices, which recently hit record highs of $2,955 per ounce, have incentivized mergers among miners seeking to scale up production and improve operational efficiency. The sector recently saw multiple deals, including Gold Field's acquisition of Osisko Mining and AngloGold Ashanti's purchase of Centamin.

The deal is expected to close by the second quarter of this year, pending regulatory approvals.

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