05:09 AM EST, 02/24/2025 (MT Newswires) -- Equinox Gold ( EQX ) has agreed to a business combination deal in which it will acquire all shares of Calibre Mining to create a Canadian gold mining company that will be the country's second largest, the companies said Sunday.

Under the terms of the deal Calibre shareholders will receive 0.31 of an Equinox share for each Calibre common share they hold. The combined company, with mines in five countries, will continue to be named Equinox Gold ( EQX ), the companies said.

On closing, Equinox shareholders will own approximately 65% of the company, Calibre the rest, the companies said.

Equinox's current President and Chief Executive Greg Smith will retain his post while Calibre's current President and Chief Executive Darren Hall will become president and chief operating officer of the combined entity, the companies said.

Both companies' boards have unanimously endorsed the deal, which is expected to close in Q2, the companies said.

Concurrent with the deal, Calibre has agreed to issue $75 million in 5.5% convertible notes to Equinox, Vestcor, and Trinity Capital Partners in a pirate placement expected to close March 4, the companies said.

The notes are convertible into Calibre shares at a price of 4.25 Canadian dollars ($2.99) per common share, the companies said.