It must be noted that the firm is also the second largest investor in Equinox as of end-2024.
SEATTLE (Scrap Monster): Calibre Mining Corp.'s largest stakeholder, Van Eck Associates Corp., has expressed disapproval of Equinox Gold Corp.'s $1.8 billion buyout offer, raising doubts about the merger that may have created Canada's second-largest gold producer. It should be mentioned that, as of the end of 2024, the company is also Equinox's second-largest investor.
Imaru Casanova, a portfolio manager at Van Eck Associates Corp., said via email that Calibre's quality and prospects are diminished by the merger of the two Canadian businesses. Although both businesses operate in the Americas, they do so in quite diverse regions, thus the firm does not support the deal since it does not see any synergies between either of their activities, she said.
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Van Eck thinks the company's shares could reach new heights due to the expected improvement in Calibre's Valentine gold mine in central Newfoundland. With production from the flagship mine expected to start in the second quarter of 2025, the miner is poised for a rerate. "Calibre's quality and potential will be diminished by the proposed combination with Equinox," Casanova continued.
In February of this year, Equinox Gold agreed to purchase Calibre in an all-stock deal, one of the largest transactions in history.
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