Post by
Ridgeback on Mar 28, 2024 9:52am
TD UPDATE
Calibre Mining Corp. (CXB-T) C$1.68 Gold Prepay to Shore Up Additional Funding for Valentine Steven Green, CFA Luke Bertozzi, (Associate) Event This morning, Calibre announced a $60mm gold prepay agreement. The company also announced that it had entered into pre-commissioning and commissioning contract with Reliable Controls Corporation (RCC) for the company's Valentine project.
Impact: SLIGHTLY POSITIVE Calibre continues to shore up its balance sheet as it develops its recent acquired Valentine project in Newfoundland. This gold prepay agreement closely follows the C$100mm bought deal financing announced on March 19. We continue to expect a full update on the Valentine development in the coming weeks, the first major update since the acquisition (LINK for more details).
$60mm gold prepay: Asahi Refining has agreed to purchase 27.6k ounce of gold for prepayment of $60mm ($2,239/oz). Calibre will deliver 2.3koz of gold per month for twelve months beginning May 2024 (approximately 10% of Calibre's production). Each month approximately 2,223oz will be credited against the prepay and Calibre will receive cash payment for the remaining ~77oz per month. Asahi has advanced a $40mm installation and is expected to advance the remaining $20mm in mid April.
Calibre has entered into a pre-commissioning and commissioning contract with Reliable Controls Corporation (RCC) for the company's Valentine project. RCC is a specialized mine and mill commissioning business and has experience working with Newmont, Barrick, Rio Tinto, and Teck.
Balance sheet and liquidity: As of Q4/23, we estimate that Calibre (pro-forma) had approximately C$150mm cash, C$245mm restricted cash (Sprott credit facility), with C$355mm remaining capex at Valentine. We estimate total debt of ~C$356mm. We believe the additional gross proceeds of the C$100mm bought deal and US$60mm gold prepay will allow the company to continue drawing on the Sprott debt facility and provide a buffer as they complete the Valentine development.
Upside 48%
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Quite a change in management styles on how to get the job done. Very creative and positive!