Canada's Equinox Gold to buy Calibre Mining in all-stock deal worth $1.8 billion
Feb 24 (Reuters) - Canada's Equinox Gold (EQX.TO), opens new tab on Sunday said it would acquire all outstanding shares of Calibre Mining (CXB.TO), opens new tab in an all-stock deal, aiming to benefit from upcoming Canadian output as gold prices reach record highs.
Under the deal, Calibre shareholders will receive 0.31 Equinox common shares for each Calibre common share held, giving the deal a valuation of C$2.56 billion ($1.80 billion) per Reuters' calculation as of their last close.
The combined company will operate nearly 11 assets, with executives planning to streamline the portfolio.
Greg Smith, Equinox's CEO, said the Caliber's other mines would immediately provide cash flow into the combined company and help with quicker debt reduction.
Smith will retain his position in the new company.
The deal, which is expected to close by the second quarter of this year, includes two of the newest Canadian gold mines: the Greenstone Mine in Ontario, which poured its first gold in May 2024, and the Valentine Gold Mine in Newfoundland & Labrador, nearing completion with first gold pour targeted for mid-2025.
The combined company is projected to produce more than 1.2 million ounces of gold annually when both Canadian mines reach full capacity.
Darren Hall, current chief executive officer of Calibre, will join the new company as President and Chief Operating Officer.
The deal comes as gold prices trade near their record peak of $2,954.69 an ounce, fueled by central bank purchases and inflation hedging, boosting gold miners' earnings.
However, analysts at TD Cowen see the deal as being at a lower valuation compared to the recent Newmont (NEM.N), opens new tab asset sales in North America.
"We would anticipate that some Calibre shareholders will be looking for a higher price which includes a change of control premium. There is potential for a superior bid to emerge," the brokerage said.
Shares of Calibre Mining were down 3.9% in early morning trade.
($1 = 1.4215 Canadian dollars)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Out
2 days ago
- Time Out
Toronto just surpassed Montreal in this world's top cities list
Don't look now, but Toronto has officially surpassed Montreal as one of the top cities in the world. According to the 2025 edition of the Global Cities Index, cities across the planet were evaluated across five core categories: Economy, Human Capital, Quality of Life, Environment, and Governance. Toronto showed up strong, coming in at 20th place, while Montreal barely made the top 50. Could it have anything to do with Montreal's high transport emissions, or the post-tropical cyclones and torrential downpours forecasted (again) for this summer? Oxford Economics is the world's foremost independent economic advisory firm, covering over 200 countries, 100 industrial sectors, and 8,000 cities and regions. Drawing on top-tier urban economic forecasts and a range of publicly available datasets, the Index builds a consistent global profile of the 1,000 largest cities. What is the world's top city? It should come as a surprise to absolutely no one that New York City topped the list as the world's top city. The urban giant ranked first in the Economics category as the economic capital of both the U.S. and, arguably, the world—boasting the largest metro economy globally, nearly double that of Los Angeles. While heavily reliant on finance, its stable GDP growth and future outlook remain strong. It also scores high in Human Capital, with a population of over 20 million, top universities, major corporate headquarters, and a highly educated, diverse population—though future growth may slow due to stricter immigration policies. What are the top 50 cities in 2025? Here are the top 50 countries according to the Oxford Economics' Global Cities Index 2025: 1. New York 2. London 3. Paris 4. San Jose 5. Seattle 6. Melbourne 7. Sydney 8. Boston 9. Tokyo 10. San Francisco 11. Los Angeles 12. Washington, D.C. 13. Dublin 14. Stockholm 15. Seoul 16. Zurich 17. Oslo 18. Copenhagen 19. Dallas 20. Toronto 21. Singapore 22. Munich 23. Brisbane 24. Chicago 25. Geneva 26. Denver 27. Amsterdam 28. Atlanta 29. Berlin 30. Houston 31. Perth 32. Luxembourg 33. Philadelphia 34. Brussels 35. Minneapolis 36. Vienna 37. Vancouver 38. Helsinki 39. Hamburg 40. San Diego 41. Phoenix 42. Basel 43. Montreal 44. Madrid 45. Miami 46. Tel Aviv 47. Austin 48. Bern 49. Gothenburg 50. Portland Why did Toronto surpass Montreal in this global ranking? Toronto is the top-ranked Canadian city thanks to its role as a national hub for business, finance, culture, and education. Scoring in the top 20 globally for both Economics and Human Capital, the city boasts strong GDP and employment growth, fuelled by high levels of international immigration. Home to Canada's largest banks and major universities like the University of Toronto, it's a centre for innovation and research. However, rapid population growth has strained housing supply, leading to affordability challenges and impacting its Quality of Life score. Environmental challenges and extreme weather also weigh on its overall ranking. Still, with strong governance, high life expectancy, and continued global appeal, Toronto is expected to remain a top performer for years to come. Meanwhile Montreal, the third Canadian city in the top 50, stands out for its strong Human Capital score, bolstered by world-renowned universities like McGill and a growing tech sector focused on AI and video games. It's also a key transport hub, home to major companies like Air Canada and Canadian National Railway. Once Canada's economic capital, Montreal now has the country's second-largest GDP, though lower wages in its dominant sectors contribute to some of the lowest incomes in North America. Still, housing is more affordable than in other Canadian cities, inequality is low, and residents enjoy high life expectancy and rich cultural offerings. Montreal's main weakness lies in the Environment category, due to high transport emissions and weather volatility. As climate change intensifies, reducing carbon output remains a key challenge for the city's economy.
Reuters
2 days ago
- Reuters
TSX futures rise ahead of key US, Canada jobs data
June 6 (Reuters) - Futures tied to Canada's main stock index rose on Friday as investors awaited domestic employment figures and monthly payrolls data from the U.S., while signs of easing tensions between Washington and China fueled trade optimism. The S&P/TSX index futures were up 0.2% at 6:52 am ET (1052 GMT). The monthly U.S. non-farm payrolls report, scheduled at 8:30 am ET, will help investors assess the impact of President Donald Trump's trade policies on the labor market. Canada's monthly unemployment data is also due at 8:30 am ET. This week, Trump doubled tariffs on imports on steel and aluminum; Canada is the largest seller of the metals to the U.S. Canada's Industry Minister Melanie Joly said on Thursday that Prime Minister Mark Carney and Trump are in direct communication as part of Ottawa's bid to persuade Washington to lift tariffs. Meanwhile, a highly-anticipated phone call between Trump and Chinese President Xi Jinping on Thursday, which Trump said led to "a very positive conclusion," offered hope the trade war between the world's two largest economies might start to de-escalate. Additionally, China called on Friday for steps to improve bilateral ties with Canada, saying there were no deepseated conflicts of interest, following a spike in trade tensions with many of Beijing's Western trade partners this year. In commodities, oil prices slipped but were on track for their firstly weekly gain. Gold prices firmed while copper ticked up; both were set for weekly rises. Canada's main stock index edged higher on Thursday as higher oil prices boosted energy shares and investors assessed prospects of Canada reaching a trade deal with the U.S. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory
Daily Record
2 days ago
- Daily Record
New DWP update on State Pension payments for people not due annual uprating
Nearly half a million people will not get new State Pension payments of up to £230.25 per week this year. Following the 4.1 per cent rise in April, the full New Sate Pension is now worth £921 every four-week payment period, while the full Basic State Pension has increased to £705.80. However, an estimated 453,000 pensioners are living in a country which does not have a reciprocal agreement with the UK Government resulting in them not receiving the annual State Pension uprating. This is despite having paid the necessary amount of National Insurance Contributions to receive the state Pension. Campaigners have fought tirelessly to rectify the policy, but on Thursday the Department for Work and Pensions (DWP) confirmed it has 'no plans to review such reciprocal social security agreements'. Pensions Minister Torsten Bell gave the written response to Liberal Democrat MP Liz Jarvis, who asked if the DWP 'plans to review its policy on freezing State Pensions for people who move abroad'. Just last month, campaigners wrote to Canadian Prime Minister Mark Carney ahead of the state opening of parliament on May 27, calling for an end to the so-called 'Frozen Pensions' scandal which affects more than 100,000 expats living in the country. Campaigners urged the former governor of the Bank of England, to 'insist' that addressing the frozen State Pensions 'must form part of any further trade, defence or cultural agreements between the UK and Canada'. Around the globe, some 442,000 British pensioners are living in a country which does not have a reciprocal agreement with the UK Government resulting in them not receiving the annual State Pension uprating. The result is that many retired expats living in Canada receive such low levels of UK State Pension that they fall under Canadian minimum income thresholds, thus qualifying for Canadian taxpayer-funded benefits. After Australia, the country is the second largest host of UK pensioners impacted by the Frozen Pensions scandal. In the letter to Mr Carney on May 20, the 'End Frozen Pensions' campaign argues that 'bringing an end to this discrimination would reduce Canada's costs,' insisting that ending the Frozen Pensions policy is now 'a matter of fairness, dignity, and economic justice' that is 'long overdue for resolution.' Second World War veteran, Mrs Anne Puckridge, is among the victims of the Frozen Pensions scandal. The 100-year-old moved to Canada in 2001 to be closer to her daughter and receives just £72.50 per week from the UK State Pension. This is less than half the £176.45 weekly rate she would be entitled to if she had remained in the UK, or lived across the border in the USA. Campaigners said the policy has caused her severe emotional distress as, like most other victims, she says she was never told her UK State Pension would be frozen at the point of emigration. As a result, the Canadian government is providing her with additional means-tested financial support to help her afford basic living costs. At the time, Edwina Melville-Gray, Chair of End Frozen Pensions Canada, said: 'It is clear this outdated and deeply hurtful policy is heightening tensions between Canada and the UK." She explained how the State Opening of Parliament was Mr Carney's "chance to set the record straight and insist that it will no longer tolerate paying for British pensioners in Canada while the UK shows no interest in fulfilling its moral duty towards them". The campaigner continued: "Canada more than meets its end of the bargain here by paying out a fully indexed State Pension to all its citizens worldwide, including Canadians in the UK. Mr Carney should insist that if the UK is to meaningfully trade and negotiate with Canada, it must reconsider its own approach to overseas state pensions.' However, despite the letter and turnout of campaigners on the day to have their voices heard, the topic was not raised. The Canadian government has been publicly calling for an end to the 'Frozen Pensions' policy for over four decades and in October last year, a total of 158 Canadian and UK parliamentarians united to urge the Labour Government to redress the situation. Campaigners are urging Prime Minister Carney to leverage this issue ahead of key trade and defence spending negotiations expected between the two countries amid a complex and volatile geopolitical backdrop. The 'End Frozen Pensions' campaign argues: 'Canada fairly adjusts pensions for its citizens living in the UK, but the UK's refusal to enter into a reciprocal agreement not only creates an unjust disparity but also imposes a financial burden on Canadian social services.'
