Calibre Shareholder Opposes Equinox's $1.8 Billion Acquisition

Deal News | Mar 19, 2025 | EIN

Calibre Shareholder Opposes Equinox's $1.8 Billion Acquisition

Equinox Gold's $1.8 billion acquisition of Calibre Mining has encountered resistance from Van Eck, the largest shareholder in Calibre Mining and the second-largest in Equinox. Van Eck expressed concerns regarding the lack of synergies and the strategic alignment of operations between the two companies, especially considering Calibre's burgeoning Valentine project in Canada. The acquisition, structured as an all-stock deal with a 22% premium offer to Calibre shareholders, aims to create a mid-tier gold producer with an annual output of 1.2 million ounces. The merger reflects a broader trend among gold companies leveraging high gold prices to bolster production capabilities. Despite Equinox's robust 2024 financial performance, including a production of 621,893 ounces of gold and a revenue of $1.5 billion, the opposition from Van Eck, due to the geographical disparity of assets, may influence shareholder approval, which necessitates a two-thirds majority.

Sectors

  • Mining and Metals
  • Finance and Investment

Geography

  • United States – Calibre Mining and Equinox Gold have operations in the U.S., and it is the primary location of some of their assets.
  • Canada – Equinox Gold is headquartered in Canada, and Calibre's flagship Valentine project is located in Canada.
  • Nicaragua – Calibre Mining has assets in Nicaragua, indicating its geographical interests.

Industry

  • Mining and Metals – The article involves Equinox Gold and Calibre Mining, both operating in the gold mining sector and affected by market trends such as high gold prices.
  • Finance and Investment – Van Eck's involvement as a key shareholder in both Equinox and Calibre highlights the role of financial stakeholders and their influence on M&A transactions.

Financials

  • $1.8 billion – The value of the proposed acquisition of Calibre Mining by Equinox Gold.
  • 8.52% – Van Eck's stake in Calibre Mining, making them the largest shareholder.
  • 8.86% – Van Eck's stake in Equinox Gold, making them the second-largest shareholder.
  • 22% – The premium offered to Calibre shareholders in the all-stock deal by Equinox Gold.
  • 1.2 million ounces – Projected combined annual gold production after the acquisition.
  • $1.5 billion – Equinox Gold's revenue in the record year of 2024.
  • 621,893 ounces – Gold production by Equinox in 2024.
  • $3,000 per ounce – Price milestone for gold, boosting miner activity.
  • 635,000 to 750,000 ounces – Equinox's expected gold production range for 2025.
  • $1,455 to $1,550 per ounce – Projected all-in-sustaining cost (AISC) for Equinox in 2025.

Participants

NameRoleTypeDescription
Equinox GoldBidding CompanyCompanyEquinox Gold is attempting to acquire Calibre Mining to consolidate gold assets.
Calibre MiningTarget CompanyCompanyCalibre Mining is being acquired by Equinox Gold in an all-stock transaction.
Van EckShareholderCompanyVan Eck is the largest shareholder of Calibre Mining and second-largest for Equinox Gold, opposing the acquisition.
Imaru CasanovaPortfolio ManagerPersonImaru Casanova publicly opposes the acquisition citing lack of synergies.
BloombergSourceCompanyBloomberg provided the report on Van Eck's opposition to the acquisition.