Ryan King, Senior VP of Corporate Development and IR at Calibre Mining (TSX.V:CXB – OTCQX:CXBMF), joins us to provide a general overview of the announcement from November 13th, where the Company has entered into a definitive arrangement agreement whereby Calibre will acquire all of the issued and outstanding common shares of Marathon Gold (TSX: MOZ – OTC: MGDPF ) pursuant to a court-approved plan of arrangement.
We get into some of the main value drivers of the pro-forma company, the opportunities for growth and value creation, the diversification of jurisdiction risk, and the quality of the management teams to move the Valentine Gold Project forward into production.
Key highlights of the Transaction include:
- Creates a high-margin, cash flow focused, mid-tier gold producer in the Americas with estimated annual production of 500 koz Au per year (2025 – 2026E average)
- Strong balance sheet with estimated combined cash of approximately US$148 million and significant free cash flow generation, ensuring the seamless completion of Valentine during the final 50% of construction
- Significant combined mineral endowment of over 4.0 million ounces of mineral reserves, 8.6 million ounces of measured and indicated mineral resources (inclusive of mineral reserves) and 4.0 million ounces of inferred mineral resources (as further detailed in the tables below)3
- Peer leading production growth of 80% (2024 – 2026E)
- Approximately 60% NAV in tier-1 mining jurisdictions1 with pro-forma market capitalization of approximately US$750 million, providing scale, enhanced trading liquidity, and a strong re-rating potential as a mid-tier gold producer
- Valentine to add expected average annual gold production of 195 koz at low projected All-in Sustaining Costs (AISC) of US$1,007 per ounce through the first 12 years of production beginning in 2025
- Robust annual cash flow from operations of US$380 million (2025 – 2026E)
- A continuous flow of exciting discovery and resource-building drill results from Nicaragua, Nevada, and Newfoundland & Labrador
We also had Ryan give us a brief update on the closing of the previously announced C$40 million financing of Marathon, and that effective, after the closing of the Private Placement, Calibre owns 14.2% of the issued and outstanding Marathon Shares.
If you have any questions for Ryan regarding Calibre Mining, then please email us at either Fleck@kereport.com or Shad@kereport.com.
- In full disclosure Shad is a shareholder of Calibre Mining at the time of this recording.
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