Calibre Mining – A dive into the acquisition of Fiore Gold, making the Company a 245,000 oz/year gold producer
Ryan King, VP of Corporate Development and IR at Calibre mining (TSX:CXB – OTCQX:CXBMF) joins us to recap the major news from this week regarding the acquisition of Fiore Gold (TSX.V:F – OTC:FIOGF). The projects Calibre is acquiring include the operating Pan Gold Mine, advanced-stage Gold Rock Project, and the past producing Illipah Gold Project, all in Nevada, as well as the Golden Eagle Project in Washington State. This acquisition will bring Calibre’s estimated production up to 245,000oz gold per year and expands the company’s operations and overall gold reserves to over 7 million ounces.
We have Ryan outline the production estimates in total and for each of the producing mines. We also discuss the importance of jurisdictional diversification from this deal beyond the company’s Nicaragua base of operations into Nevada and Washington.
Adding value to these Fiore assets is also a key component of this acquisition. We have Ryan share some of the goals to help grow the assets and add value.
Please email us with any follow up questions for Ryan. Our email addresses are Fleck@kereport.com and Shad@kereport.com.
This interview will is also airing on the Weekend Show however we wanted to get it out to all of you earlier!
Click here to read over the full news release on the acquisition.
Here is an interesting promo piece that Calibre put out this week on their site, but it really is well done with many charts, tables, and graphics to put things into perspective:
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3 Big Reasons (And One Really Big Reason) Gold Investors Need To Pay Attention To Calibre Mining Right Now
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https://tinyurl.com/3pf32dap
More M&A and Two Junior Take-Over Candidates to Consider
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David Erfle – Friday October 29th, 2021
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“With the mining complex attempting to create a sustainable bottom since the beginning of Q4, the M&A space also began to perk up recently. Once the high-profile Agnico-Eagle/Kirkland Lake Gold “merger of equals” deal was announced at the tail-end of Q3, I suggested the possibility of these issues being related in my October 1st column, along with sparking more M&A activity in the near-term.”
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“We saw more junior sector M&A this week, when Calibre Mining (CXB.TO) announced it is buying fellow Canadian miner Fiore Gold (F.V) in a deal the company says will create a diversified, Americas-focused mid-tier gold producer. Terms of the deal state Fiore’s shareholders will receive C$0.10 in cash and 0.994 of a Calibre common share for each Fiore share they own, for an implied price of C$1.80 per Fiore common share, and a 36% premium based on the 20-day volume-weighted average price of both companies.”
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https://mailchi.mp/9fdbfa4750b5/david-erfle-weekly-gold-miner-sector-op-ed-1600258
A big congratulations to the Calibre mining team, and believe this is a good business combination and hope that the larger combined company, with a larger production profile and larger combined gold reserves will attract more institutional buyers or even retail investors that may have been squeamish about Nicaragua. Nevada is one of the very top rated jurisdictions for gold mining on the planet, so that will likely help balance things out. It will also be good to see Fiore’s assets get the proper exploration budget that they deserve, and Calibre doesn’t play around as far as exploration. They have 15 drill rigs turning on the properties in Nicargua as an example, so it will interesting to follow along with the drilling they do in Nevada, utilizing the Fiore team’s knowledge and understanding of the geological setting.
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I remain a happy Calibre shareholder, and while it has already had a good overall weighting amongst my other gold stocks, as a growth oriented producer, I still plan on adding more on any future weakness we see in the PM sector.