The proposed merger between Equinox Gold (TSX: EQX) and Calibre Mining (TSX: CXB) appears to be proceeding, with the two equities last night announcing they had secured shareholder approval to move forward with the transaction.
The approval follows the transaction being reworked in favor of Calibre shareholders, after the special meeting of shareholders was delayed by a week to secure the votes required to approve the deal. The transaction was approved by 85.87% of the shares voted by Equinox shareholders, and by 75.28% of the shares voted by Calibre shareholders.
Under the revised terms, Calibre shareholders are set to receive 0.35 of an Equinox share for each share of Calibre held, a figure which represents just a 10% premium to the closing price of the equities on February 21. Previously, that ratio was set at 0.31 of an Equinox share for each share of Calibre held.
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With approvals in hand from shareholders, the two parties will now seek court approval at a hearing scheduled for May 6. The transaction is also subject to exchange approval alongside Canadian and Mexican government approval, of which only Canadian officials have approved to date.
The transaction is currently expected to close by the end of Q2 2025.
The merger between the two miners is expected to create an Americas-focused gold producer with operations across five countries. Production in 2025 is expected to total 950,000 ounces on a combined basis, of which 590,000 ounces will come from Canada, making the pro-forma entity the second largest miner in Canada.
Equinox Gold last traded at $8.77 on the TSX.
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