The Investment Whisperer
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Investment Whisperer

Investing

Van Eck Opposes Equinox Gold’s US$1.8 Billion Takeover of Calibre Mining

by admin March 20, 2025
March 20, 2025
Van Eck Opposes Equinox Gold’s US$1.8 Billion Takeover of Calibre Mining

Calibre Mining’s (TSX:CXB,OTCQX:CXBMF)largest shareholder has come out against Equinox Gold’s (TSX:EQX,NYSEAMERICAN:EQX) US$1.8 billion takeover bid, casting doubt over the year’s biggest gold deal.

According to Bloomberg, Van Eck Associates, which holds an 8.69 percent stake in Calibre, has voiced its opposition, citing a lack of operational synergies and concerns over the dilution of Calibre’s quality.

Van Eck was also the second largest investor in Equinox as of December 31, 2024.

The proposed all-stock transaction, announced in February, aims to create a mid-tier gold producer with annual output of approximately 1.2 million ounces. However, the deal still requires shareholder and regulatory approval. Both companies have scheduled shareholder votes, with two-thirds majorities required for approval.

“We are not supportive of this transaction. We don’t see any synergies between any of the companies’ operations,” Imaru Casanova, portfolio manager at Van Eck’s International Investors Gold Fund, said in an email to Bloomberg on Tuesday (March 18). “Both operate in the Americas, but in vastly different locations.”

Casanova also emphasized that Calibre was poised for a revaluation as it advanced its flagship Valentine project in Newfoundland, Canada. Valentine is set to become Atlantic Canada’s largest gold mine.

Equinox operates mines across Canada, Mexico, Brazil and the US, while Calibre’s assets are concentrated in Nicaragua and the US. The deal would make the combined company one of the top 15 global gold producers.

Equinox declined to comment on Van Eck’s opposition, while Calibre did not immediately respond to inquiries.

The Equinox-Calibre deal is part of a broader trend of consolidation in the gold sector, driven by gold’s surging price and strong company balance sheets. However, investors remain cautious, given the industry’s history of high-priced mergers that fail to generate expected returns. Many mining mergers since 2010 have struggled to deliver, with industry reports highlighting skepticism due to overvalued acquisitions and underperforming transactions.

As mentioned, the purchase still requires approval from shareholders and regulatory bodies.

With Van Eck’s significant opposition, other institutional investors may reconsider their stance before the vote.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Gold Price Hits New Record as Fed Holds Rates Steady
next post
Rock Chip Results Confirm Polymetallic Potential

Related Posts

Sirona Biochem

May 11, 2024

Canada Nickel Announces Exercise of Mann Property Option...

April 23, 2024

5 Biggest AI ETFs in 2025

March 6, 2025

Nickel Price Update: Q1 2025 in Review

April 23, 2025

Top 8 Canadian Lithium Stocks

January 23, 2024

Altech – Third Offtake Heads of Agreement for...

December 18, 2024

Top 10 Tin-producing Countries (Updated 2024)

December 18, 2024

Marvel Completes Drilling at Duhamel, Nickel-Copper-Cobalt Project, North...

March 8, 2024

Top 7 Global Lithium Stocks in 2025

April 4, 2025

South Star to Host Live Corporate Update Webinar...

December 16, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (1,429)
    • Investing (3,506)
    • Politics (4,736)
    • World (4,641)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheInvestmentWhisperer.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 TheInvestmentWhisperer.com | All Rights Reserved