There are plenty of deals happening in the lead up to the Prospectors & Developers Association of Canada (PDAC) convention in Toronto, with Equinox Gold (TSX:EQX) and Calibre Mining (TSX:CXB) among the companies announcing a merger.
The pair have entered into a definitive agreement for a merger to elevate the combined company to the status of second largest gold producer in Canada.
Under the deal, Calibre shareholders will receive 0.31 of an Equinox Gold share for every Calibre share held.
Calibre and Equinox have market capitalisations of C$2.4 billion ($2.6 billion) and C$4.2 billion, respectively. The implied market value of the larger company on completion of the merger is estimated at C$7.7 billion.
Equinox says the deal will create an Americas-focused diversified gold producer with a portfolio of operating mines in five countries anchored by two high-quality, long-life, low-cost Canadian gold mines.
The Greenstone Mine…
