Calibre Mining And Equinox Gold To Form Canada's Second-Largest Gold Producer

Calibre Mining Corp. (TSX: CXB, OTCQX: CXBMF) has entered into a definitive agreement to merge with Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) in a transformational $2.6 billion transaction.

The merger will create New Equinox Gold, a diversified Americas-focused gold producer with a portfolio of operating mines in five countries, anchored by two cornerstone assets in Canada. With 100% ownership of the Greenstone Mine in Ontario and the Valentine Gold Mine in Newfoundland and Labrador, the newly combined entity is set to become Canada's second-largest gold producer.

The newly formed New Equinox Gold is projected to produce approximately 950,000 ounces of gold in 2025 (mid-point of combined guidance), with the potential to exceed 1.2 million ounces annually as Greenstone and Valentine reach full capacity (see news release February 23, 2025). The combined entity will have an estimated market capitalization of C$7.7 billion.

The merger strengthens the company's operational scale, diversifies its asset base, and enhances its ability to generate substantial free cash flow. With two new, low-cost, long-life open-pit gold mines forming the foundation of its production profile, New Equinox Gold is well-positioned to deliver sustainable growth. The integration of these assets will streamline operations, improve efficiency, and leverage the exploration potential across its development pipeline.

New Equinox Gold will be led by Greg Smith, current President and CEO of Equinox Gold, who will continue as CEO of the combined entity. Darren Hall, current CEO of Calibre Mining, will serve as President and Chief Operating Officer. The Board of Directors will include Ross Beaty as Chair, along with five additional directors from Equinox and four from Calibre, including Doug Forster (Lead Director of Calibre Mining) and Blayne Johnson (Chairman of Calibre Mining). The combined entity will benefit from a significant reserve and resource base, a strong balance sheet, and a highly prospective pipeline of development and exploration projects, ensuring long-term growth and stability.

Beyond its core assets in Canada, New Equinox Gold's expanded portfolio includes a strong presence in the United States, Mexico, Nicaragua, and Brazil. This geographic diversity helps mitigate operational risks while allowing the company to capitalize on favorable mining jurisdictions. The expanded footprint is further strengthened by an extensive pipeline of development and expansion projects that will support the company's growth trajectory for years to come.

As gold prices remain at historic highs, the financial benefits of the merger are expected to materialize rapidly. J.P. Morgan has projected another strong year for gold in 2025, with prices currently trading around $2,750 per ounce and forecasted to reach $2,950 per ounce in the next twelve months, according to Barron's.

The increase in production scale, coupled with record-high gold prices, will drive strong free cash flow generation, supporting continued investment in exploration, project development, and debt reduction. The company stands to benefit from enhanced liquidity, increased institutional interest, and improved valuation as it advances objectives.

With this strategic combination, New Equinox Gold is set to become a leading gold producer, positioning itself as a major player in the global mining sector.