BUZZ-Equinox Gold falls after $1.8 billion deal to buy Calibre Mining

Shares of Canadian miner Equinox Gold EQX.TO fall 2.9% to C$9.42

Co to acquire all outstanding shares of Calibre Mining CXB.TO in an all-stock deal worth C$2.56 billion ($1.80 billion)

CXB shareholders to receive 0.31 Equinox common shares for each CXB common share held

Combined company would operate ~11 assets, and is expected to produce more than 1.2 million ounces of gold annually after mines reach full capacity

CXB's mines would immediately provide cash flow into the combined company and help with quicker debt reduction

Deal expected to close by Q2 2025

TD Cowen analysts see the deal as being at a lower valuation compared to the recent Newmont divestitures

"We would anticipate that some CXB shareholders will be looking for a higher price which includes a change of control premium. There is potential for a superior bid to emerge" - brokerage

Shares of CXB fall 7.1% to C$2.87

Including session's moves, EQX has gained ~30% and CXB is up 33.5% YTD

($1 = 1.4234 Canadian dollars)