Best Investing Advice
  • Politics
  • Economy
  • Forex
  • Stock
  • Editor’s Pick
  • Politics
  • Economy
  • Forex
  • Stock
  • Editor’s Pick
No Result
View All Result
Best Investing Advice
No Result
View All Result

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

admin by admin
March 20, 2025
in Editor's Pick
0
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

Previous Post

Crypto Market Recap: US Crypto Legislation “Imminent,” Coinbase Gets Bullish Rating

Next Post

Klarna lands buy now, pay later deal with DoorDash, notching another win ahead of IPO

Next Post
Klarna lands buy now, pay later deal with DoorDash, notching another win ahead of IPO

Klarna lands buy now, pay later deal with DoorDash, notching another win ahead of IPO

Subscribe to InvestiStratix.com

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


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

    Popular News

    Top 4 Vanadium-producing Countries

    Top 4 Vanadium-producing Countries

    May 30, 2025
    Cardiex Completes Placement & Launches Entitlement Offer

    Cardiex Completes Placement & Launches Entitlement Offer

    May 30, 2025
    CDX May Investor Presentation

    CDX May Investor Presentation

    May 30, 2025
    Trump’s Nuclear Revival Plan Boosts Uranium Prices, Sends US Miners Soaring

    Trump’s Nuclear Revival Plan Boosts Uranium Prices, Sends US Miners Soaring

    May 30, 2025
    Group Eleven Announces Appointment of Jasmine Lau as Chief Financial Officer

    Group Eleven Announces Appointment of Jasmine Lau as Chief Financial Officer

    May 30, 2025

    Trending News

    Top 4 Vanadium-producing Countries

    Top 4 Vanadium-producing Countries

    May 30, 2025
    Cardiex Completes Placement & Launches Entitlement Offer

    Cardiex Completes Placement & Launches Entitlement Offer

    May 30, 2025

    About Us

    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 bestinvestingadvice.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Economy
    • Forex
    • Stock
    • Editor’s Pick

    Copyright © 2025 bestinvestingadvice.com | All Rights Reserved