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Fiore Gold shares jump on acquisition announcement

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(Kitco News) - Calibre Mining (TSX: CXB) announced Monday that it has entered into a definitive arrangement agreement with Fiore Gold (TSXV: F), whereby Calibre will acquire all of the issued and outstanding common shares of Fiore pursuant to a court-approved plan of arrangement.

"This transaction will create a diversified, Americas-focused, growing mid-tier gold producer with targeted annual gold production of approximately 245,000 ozs. The combined company will have comprehensive technical capabilities to exploit a pipeline of development and exploration opportunities across a broader portfolio.  This growth strategy will be supported by a strong balance sheet with a combined cash balance of $96 million and no bank debt (as at September 30, 2021)," the company said in a statement.

Pursuant to the transaction, Fiore shareholders will receive 0.994 of a Calibre common share and C$0.10 in cash for each Fiore common share held. The consideration implies C$1.80 per Fiore common share, a premium of 44% based on the closing prices of Calibre and Fiore common shares on October 22, 2021.  

According to the company's statement, existing shareholders of Calibre and Fiore will own approximately 78% and 22% of the combined company, respectively.

Calibre is a Canadian-listed gold mining and exploration company with two 100%-owned operating gold mines in Nicaragua.

Fiore Gold is a growth-oriented US gold producer generating cash flow from its Pan Mine in Nevada, organic growth from the company's adjacent and federally permitted Gold Rock project, further Nevada land holding at its Illipah project, and future upside from its Golden Eagle project in Washington State.

Revival Gold CEO Hugh Agro said the Calibre-Fiore deal augurs more mining deals, especially with precious metals trading higher.

“As the gold price shows signs of continued strength into 2022, I think we can expect more transactions – big ones like the Agnico-KL merger but also smaller ones like today’s announced acquisition of Calibre by Fiore. Credit to Fiore for successfully brining the Pan Mine back to life and for managing the operation so well,” said Agro.

Fiore shares were up 24.8% this morning.

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