Equinox Gold falls after $1.8 billion deal to buy Calibre Mining

Equinox Gold

24/02/2025 15:57

** Shares of Canadian miner Equinox Gold  EQX.TO  fall 2.9%
to C$9.42
    ** Co to acquire all outstanding shares of Calibre Mining
 CXB.TO  in an all-stock deal worth C$2.56 billion ($1.80
billion)
    ** CXB shareholders to receive 0.31 Equinox common shares
for each CXB common share held
    ** Combined company would operate ~11 assets, and is
expected to produce more than 1.2 million ounces of gold
annually after mines reach full capacity
    ** CXB's mines would immediately provide cash flow into the
combined company and help with quicker debt reduction
    ** Deal expected to close by Q2 2025
    ** TD Cowen analysts see the deal as being at a lower
valuation compared to the recent Newmont divestitures
    ** "We would anticipate that some CXB shareholders will be
looking for a higher price which includes a change of control
premium. There is potential for a superior bid to emerge" -
brokerage
    ** Shares of CXB fall 7.1% to C$2.87
    ** Including session's moves, EQX has gained ~30% and CXB is
up 33.5% YTD   


($1 = 1.4234 Canadian dollars)
    

 (Reporting by Vallari Srivastava in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com;))