The acquisition of Calibre Mining (TSX: CXB) by Equinox Gold (TSX: EQX) is evidently facing headwinds. The transaction, which was to be approved today by shareholders at a special meeting, has seen the terms reworked and the meeting delayed by a week, suggesting the two parties didn’t have enough votes for the transaction to proceed.
Under the revised terms, Calibre shareholders are now set to receive a slight premium, versus the prior terms that were set “at market.” The revised terms will see Calibre shareholders receive 0.35 Equinox Gold common shares for each share of Calibre currently held. The figure is said to amount to a mere 10% premium to the closing price of the equities on February 21, which was the day before the deal was announced.
Under the prior terms, Calibre shareholders were to receive 0.31 of an Equinox Gold share for each share of Calibre held.
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READ: Equinox Gold To Acquire Calibre Mining At Discount To Market
Post-transaction, Calibre shareholders will now own 39% of the resulting company.
As a result of the change, the special meeting of shareholders has been delayed from today to May 1, 2025. The record date to vote on the transaction remains as March 18, 2025.
Early indications suggest that Equinox Gold shareholders were “overwhelming” in their support for the deal, with 70% of shares voted so far. No such commentary however was provided related to Calibre shareholders, suggesting that as it currently stands the transaction would not proceed.
Calibre Mining last traded at $3.13 on the TSX.
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