Calibre Mining: B2Gold Deal for Nicaragua Mines is "Transformational"

TL;DR

Caliber Mining has acquired two producing gold mines and secured over $100 million in financing from B2 Gold, positioning themselves to become a significant gold producer in Nicaragua.

Transcript

I'm Charlotte McLeod with the investing news network and here today with me is Brian King vice president of corporate development and I are at caliber mining thanks so much for being here today thanks very much for having me it's it's a pleasure we're down at the Denver Gold Show there seems to be a bit of exuberance around the gold price investmen... Read More

Key Insights

• 🏅 Caliber Mining has been exploring in Nicaragua for ten years and has accumulated significant gold resources in the country.
• 🏅 The acquisition of two producing gold mines and the partnership with B2 Gold positions Caliber Mining as a significant gold producer in Nicaragua.
• 🤨 The successful capital raise demonstrates investor confidence in the company's team, track record, and potential for value creation.
• 🖕 The company plans to focus on optimizing the mines, exploring the exploration potential, and becoming a mid-tier gold producer.

Questions & Answers

Q: How were you able to raise over $100 million in a challenging capital-raising environment?

The company attributes their successful fundraising to the quality of their team, their track record of identifying and adding value to assets, and the alignment of management and board with shareholders. Additionally, the increase in the gold price during the marketing of the deal helped attract investors.

Q: Why did Caliber Mining decide to move from an exploration company to a producing company?

The company believes that acquiring producing assets presents an opportunity to optimize the mines, increase grades, decrease costs, and explore the exploration potential around the mines. They see value in transforming into a gold producer and leveraging their experience to add value to the acquired assets.

Q: What are the immediate next steps for Caliber Mining?

Once the deal is closed, Caliber Mining plans to review the assets and focus on increasing grades and reducing costs at the mines. They will announce exploration plans and budgets for 2019 and 2020 and provide regular news flow on exploration results, drilling meters, and production numbers.

Q: What is the company's view on the current gold price environment?

The company acknowledges the volatility and uncertainty in the macro landscape but believes that there are multiple reasons why gold is an attractive investment, including geopolitical tensions, trade wars, dovish interest rate policies, and potential global economic slowdown. They believe that having exposure to gold is important and are running their business to ensure excellent revenue and profitability, irrespective of the gold price.

Summary & Key Takeaways

• Caliber Mining has been exploring in Nicaragua for the past decade and has accumulated over 2.4 million ounces of gold in inferred resources in the northern part of the country.

• The company believes that Nicaragua is a fantastic jurisdiction to operate in, with favorable mining legislation and excellent potential for geological exploration.

• With the acquisition of two producing gold mines and the partnership with B2 Gold, Caliber Mining aims to optimize these assets, explore new opportunities, and become a mid-tier gold producer.