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 agreementwith Fiore Gold (TSXV: F), whereby Calibre will acquire all of the issued andoutstanding common shares of Fiore pursuant to a court-approved plan ofarrangement.

"This transaction will createa diversified, Americas-focused, growing mid-tier gold producer with targetedannual gold production of approximately 245,000 ozs. The combined company willhave comprehensive technical capabilities to exploit a pipeline of developmentand exploration opportunities across a broader portfolio. This growth strategy will be supported by astrong balance sheet with a combined cash balance of $96 million and no bankdebt (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 incash for each Fiore common share held. The consideration implies C$1.80 perFiore common share, a premium of 44% based on the closing prices of Calibre andFiore common shares on October 22, 2021.

According to the company'sstatement, existing shareholders of Calibre and Fiore will own approximately78% and 22% of the combined company, respectively.

Calibre is a Canadian-listedgold mining and exploration company with two 100%-owned operating gold mines inNicaragua.

Fiore Gold is agrowth-oriented US gold producer generating cash flow from its Pan Mine inNevada, organic growth from the company's adjacent and federally permitted GoldRock project, further Nevada land holding at its Illipah project, and futureupside 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.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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