Calibre Mining (TSX: CXB) has embarked on raising C$100 million ($74m) 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 C$1.68 per share.
The underwriters have the option to buy up to an additional 15% in overallotments.
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.
Chief among Calibre’s projects is the wholly owned Valentine open pit gold development in central Newfoundland. This 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 2025.
The Valentine project has estimated proven and probable reserves of 2.7 million oz. of gold in 512.6 million tonnes grading 1.62 g/t gold. Total measured and indicated resources (inclusive of reserves) contain 3.4 million oz. in 64.6 million tonnes grading 1.90 g/t gold. Additional Inferred resources are 1.1 million oz. in 20.8 million tonnes grading 1.65 g/t gold.
In Nicaragua, the El Limon mine has produced more than 3.5 million oz. of gold and the La Libertad and the La Libertad mine has produced about 1.9 million oz. 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.
