11:30 AM EST, 02/25/2025 (MT Newswires) -- National Bank of Canada on Tuesday maintained its outperform rating on the shares of Equinox Gold ( EQX ) ands its $13.00 price target as it came off restriction after the company agreed to acquire Calibre Mining ( CXBMF ) .

Equinox on the weekend said it reached definitive agreement to acquire Calibre Mining ( CXBMF ) for about $2.6 billion to create Canada's second-largest gold producer.

Under the terms, Calibre shareholders will receive 0.31 Equinox shares for each Calibre share, implying consideration of $3.00 per share for each Calibre share.

Upon closing, existing Equinox shareholders and former Calibre shareholders will own approximately 65% and 35% of the combined company. The combined company will have an estimated market capitalization of $7.7 billion.

"We continue to view Equinox as shifting to a period of sustainable positive [free cash flow] as the ramp-up of the new Greenstone mine continues in 2025," National Bank said. "We expect management will focus cash flows coming in over the [next 12 months] on debt reduction."

"Additionally, we believe management is making a prudent decision to protect the future economics of the Los Filos mine by demanding better terms with the local communities are agreed to before committing to invest further in the asset," the bank added.

Price: 9.24, Change: -0.46, Percent Change: -4.74