NIA's #1 overall pick for 2019, Fiore Gold (TSXV: F) is being acquired by Calibre Mining at a 44% premium valuing Fiore at $158 million!
Fiore Gold gained by 25.6% today to $1.57 per share where it is up by 582.6% from NIA's suggestion price of $0.23 per share!
Calibre Mining to acquire Fiore Gold
Calibre Mining Corp. will acquire all the shares of Fiore Gold Ltd. including a 100% interest in the Pan Mine in White Pine County, Calibre announced Oct. 25.
Calibre will be acquiring a 100% interest in Fiore’s Pan Mine, the adjacent advanced-stage Gold Rock Project and the past-producing Illipah Gold Project in Nevada and Fiore’s Golden Eagle exploration project in Washington State.
“This transaction is the type of value-added diversified growth we set out to accomplish when we partnered with B2Gold to acquire our initial gold production,” said Blayne Johnson, chairman of Calibre. “The addition of a top-tier, low-risk mining jurisdiction in Nevada creates a lower risk profile with greater asset and country diversification.”
Vancouver-based Calibre has two gold mines in Nicaragua and gold production of 170,000 to 180,000 ounces per year.
Johnson said that the Pan Mine “brings an immediate increase to our production and cash flow, in addition to significant exploration potential,” and he said the transaction “unlocks value for both Calibre and Fiore shareholders.”
The arrangement has an equity value of roughly $158 million, with Fiore shareholders to receive a spot premium of 44%, and once the deal is finalized Calibre shareholders will have 78% ownership, Fiore shareholders 22%. B2Gold holds roughly 37% of Calibre shares.
Fiore CEO Tim Warman said that Fiore “is pleased to undertake this combination with Calibre to create a new mid-tier gold producer with excellent growth prospects. There is a great deal of common ground between our companies. In the past few years, we have both overseen the successful ramp-up of our respective assets through solid operating discipline and ESG [environmental, social and governance] focus.”
He also said that while both companies have “stayed focused on cash flow generation and capital allocation discipline, we have both prioritized organic growth through successful exploration, reserve replacement, regional land acquisition and progression of our development assets.”
Fiore reported earlier in October that the company produced 13,527 ounces of gold in the quarter ending Sept.30 and produced 45,397 gold ounces for the fiscal year ending Sept. 30. The company also stated that it expected a feasibility study for mining Gold Rock to come out in the fourth quarter of next year.
Fiore acquired the Illipah mine site earlier this year, with plans to explore the property.
Darren Hall, the president and CEO of Calibre, said the transaction builds on the company’s commitment to “create value for its shareholders through a disciplined operating and exploration approach.”
He also said that he looks forward “to working with the team in Nevada as they have done a great job delivering on Pan and advancing Gold Rock.”
The companies reported that the growth strategy will be supported by a strong balance sheet with a combined cash balance of $96 million and no bank debt.
The aim is to create an Americas-focused company with a goal of 245,000 gold ounces of production a year.'
Shareholders must approve the merger, and both companies have slated votes for January and hope to close the deal in January. The Toronto Stock Exchange and TSX Venture Exchange also must approve the arrangement, and the transaction must have regulatory approval.
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