Gold industry shake-up: Equinox Gold and Calibre Mining to merge in blockbuster deal

A major consolidation is set to reshape the gold mining sector, as Equinox Gold Corp. and Calibre Mining Corp. have announced a definitive agreement to merge, creating a leading Americas gold producer. The transaction, structured as a court-approved plan of arrangement, will see Equinox Gold acquire all outstanding shares of Calibre Mining.

The new entity, retaining the Equinox Gold name, is expected to become Canada‘s second-largest gold producer, expanding its footprint across key mining jurisdictions. With an estimated annual production of approximately 950,000 ounces in 2025, and potential to exceed 1.2 million ounces as key assets scale up, the merger represents a strategic move towards sustained gold production growth.

What Does This Merger Mean for Gold Production Growth?

Equinox Gold’s acquisition of Calibre Mining significantly enhances its operational scale and financial flexibility. Central to the deal are two cornerstone Canadian assets: the Greenstone Mine in Ontario, which reached commercial production in November 2024, and the Valentine Gold Mine in Newfoundland & Labrador, set to pour its first gold in mid-2025. At full capacity, these mines are expected to contribute 590,000 ounces annually, strengthening Equinox’s standing in the Americas gold producer market.

The combined portfolio spans five countries—Canada, the United States, Mexico, Nicaragua, and Brazil—offering geographic diversification and access to highly prospective deposits. Beyond immediate gold production growth, the merger brings a robust pipeline of expansion projects, development opportunities, and exploration assets, positioning the new Equinox Gold for sustained long-term growth.

How Will Shareholders Benefit from This Mining Sector Merger?

Under the terms of the transaction, Calibre shareholders will receive 0.31 Equinox common shares for each Calibre share held. Following completion, Equinox shareholders will own approximately 65% of the combined entity, while Calibre shareholders will hold 35%. The merger values the new Equinox Gold at an estimated C$7.7 billion, underscoring its significance within the mining sector merger landscape.

Beyond equity value, shareholders stand to benefit from increased free cash flow generation. The merger capitalizes on record-high gold prices, leveraging Equinox’s financial strength to accelerate deleveraging and fund further growth initiatives. Additionally, the deal enhances capital market visibility, attracting institutional investors and reinforcing Equinox Gold’s standing as a premier mid-tier mining powerhouse.

What Are the Strategic Advantages of the Equinox Gold-Calibre Mining Merger?

By integrating Calibre Mining’s operations, Equinox Gold gains access to an expanded production base with significant cost efficiencies. The consolidation aligns with Equinox’s long-term strategy of building a diversified, scalable gold mining business with assets in politically stable jurisdictions. The company now holds 100% ownership of two newly developed, long-life, low-cost mines in Canada, positioning itself among the most competitive Americas gold producers.

The merger also creates opportunities for operational synergies. Combining technical expertise, supply chain efficiencies, and shared infrastructure is expected to drive down production costs while increasing output. Furthermore, the addition of high-quality assets enhances risk mitigation, reducing reliance on any single mine or region.

Equinox Gold’s founder Ross Beaty emphasized the transformational nature of the deal, noting that it brings together “two excellent operating teams” to form a mining powerhouse. Equinox’s President and CEO, Greg Smith, echoed this sentiment, stating that the merger creates a company with enhanced resilience and financial strength, capable of delivering significant long-term value.

How Will the New Equinox Gold Be Managed?

Leadership continuity remains a key focus, with Equinox Gold’s existing management team continuing to oversee the newly merged operations. Greg Smith will retain his role as CEO, while Calibre Mining’s CEO, Darren Hall, will transition to President and Chief Operating Officer. The board of directors will consist of ten members, including Ross Beaty as Chair, alongside five additional Equinox-appointed directors and four Calibre-appointed directors.

This leadership structure aims to balance expertise from both companies, ensuring a seamless integration process and maintaining operational excellence. The combined company’s strategic direction will be shaped by experienced industry professionals with a strong track record of value creation in the mining sector merger space.

What Are the Next Steps for the Equinox Gold-Calibre Mining Merger?

The transaction remains subject to shareholder and regulatory approvals. Both Equinox and Calibre shareholders will vote on the deal before May 31, 2025. Additionally, competition authorities in Canada and Mexico must authorize the transaction. Pending these approvals, the merger is expected to close in the second quarter of 2025.

To support the transaction, Calibre Mining has secured a US$75 million convertible note financing. The proceeds will be used for transaction-related expenses and general corporate purposes. These unsecured notes carry a 5.5% annual interest rate and mature in five years. Investors in this financing include Equinox, Vestcor Inc., and Trinity Capital Partners.

What Does the Future Hold for the Americas Gold Producer?

The newly formed Equinox Gold is well-positioned for continued gold production growth, benefiting from an expanded asset base, enhanced operational efficiencies, and a strong financial position. With flagship mines in Canada and a diversified portfolio spanning North and South America, the company is poised to capitalize on rising gold prices and increasing demand for precious metals.

The combination of Greenstone and Valentine as cornerstone assets significantly strengthens Equinox’s Canadian presence, solidifying its status as the country’s second-largest gold producer. Looking ahead, expansion projects in the United States, Mexico, Nicaragua, and Brazil offer further upside potential, enabling sustainable production increases and resource expansion.

The mining sector merger between Equinox Gold and Calibre Mining signals a shift in the industry, as mid-tier producers consolidate to achieve scale and long-term resilience. Investors will be closely watching how the integration unfolds, as Equinox Gold embarks on its next chapter as a leading Americas gold producer.