Calibre raising $100M to advance projects in Canada, US and Nicaragua

Calibre Mining  (TSX: CXB; US-OTC: CXBMF) is raising $100 million for projects in Canada, the United States, and Nicaragua. A syndicate of underwriters led by BMO Capital Markets has agreed on a bought deal basis to purchase 59.6 million shares of Calibre at a price of $1.68 each.

The underwriters have the option to buy up to an additional 15% in over-allotments.

Calibre says the proceeds will be used towards continued development of the Valentine gold project in Newfoundland; the El Limon and La Libertad gold mines in Nicaragua, and the Pan gold mine in Nevada. Provision has also been made for more exploration and for general corporate and working capital purposes.

The fund raising comes just over two months after Calibre announced record gold production of 283,494 oz. across its operations in 2023, and four months after its all-share merger with Marathon Gold, which held the Valentine project.  

The open pit Valentine project in central Newfoundland is chief among Calibre’s projects. It will be the largest gold mine, producing 195,000 oz. per year for the first 12 years, in Atlantic Canada. Production is planned for the first quarter of next year.

Valentine has estimated proven and probable reserves of 2.7 million oz. of gold in 512.6 million tonnes grading 1.62 grams gold per tonne. Total measured and indicated resources (inclusive of reserves) contain 3.4 million oz. in 64.6 million tonnes grading 1.90 grams gold. Additional inferred resources are 1.1 million oz. in 20.8 million tonnes grading 1.65 grams gold.

In Nicaragua, the El Limon mine has produced more than 3.5 million oz. of gold and the La Libertad mine has produced about 1.9 million ounces. The two mines have a probable reserve containing 6.8 million oz. of gold. Both are 100%-owned by Calibre.

The Pan gold mine in Nevada, also 100%-owned, is an open pit and heap leach operation. The smallest of Calibre’s mines, producing about 45,400 oz. of gold in 2022, Pan has tremendous exploration potential with targets both to the north and south of the operation.