Calibre Mining advances Valentine gold mine project, Newfoundland

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Calibre Mining Corp. [TSX-CXB; OTCQX-CXBMF] has entered into a key pre-commissioning and commissioning contract with Reliable Controls Corp. (RCC) of Salt Lake City, Utah for the company’s Valentine gold mine (VGM) in Newfoundland and Labrador. The company has also executed a US$60-million short-term, gold prepayment agreement with Asahi Refining USA Inc., pursuant to which Asahi has agreed to purchase a total of 27,600 ounces of gold from the company, comprising less than 10% of the company’s expected 2024 gold production.

Darren Hall, president and CEO of Calibre, stated: “With construction at Valentine 61% complete, I remain confident in our ability to deliver first gold during H1 2025. To further derisk delivery, I am pleased to announce that we have secured RCC, a team of highly experienced commissioning experts, to lead pre-commissioning and commissioning of the process plant.

“Given the strong gold price environment, and continued investment across our portfolio of assets, we have executed a US$60-million, 12-month gold prepay as part of our cash flow management strategy as we transition to a quality mid-tier gold producer. The prepay represents less than 10 per cent of our expected 2024 gold production, with deliveries commencing in May, 2024.”

RCC is a specialized and highly experienced mine and mill commissioning business which have worked successfully on numerous mine builds, including with Newmont, Barrick, Rio Tinto and Teck. RCC will support Calibre to ensure all aspects of operational readiness, including human capital, are in place to ensure a smooth and efficient transition from construction to steady-state operations.

On March 27, 2024, Calibre entered into a US$60-million gold prepayment agreement with Asahi, pursuant to which Asahi has advanced a first instalment of US$40-million and is expected to advance a second instalment of US$20-million on or about April 15, 2024.

Calibre is required to deliver Asahi 2,300 ounces of gold per month over a 12-month period, beginning in May, 2024, such ounces are determined based on gold forward curve prices averaging $2,239/oz. Approximately 2,233 ounces per month will be credited against the prepayment and Calibre will receive a cash payment for the balance. The obligations under the gold prepayment agreement and ancillary documents are guaranteed by certain United States subsidiaries of the company and secured by all present and after-acquired property of such U.S. subsidiaries and certain gold and dore of the company.

Calibre is a Canadian-listed, Americas-focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland and Labrador in Canada, Nevada and Washington, USA, and Nicaragua.

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