Calibre Makes Final Acquisition Payments Totaling US$15.5 Million to B2Gold Ahead of Schedule; Now Debt-Free and Generating Significant Free Cash Flow

Rhea-AI Summary

Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) has announced it is now debt-free after transferring a final payment of US$15.5 million to B2Gold Corp. This payment settles previously deferred amounts, including a US$10 million acquisition payment and a US$5.5 million working capital adjustment. The decision to repay was made following a strong third quarter, resulting in significant free cash flow and US$56 million in cash on hand. Calibre is focused on sustainable growth and operates two gold mines in Nicaragua.

Positive

• Debt-free status improves financial stability.
• Strong third-quarter performance indicates robust cash flow.
• Possesses US$56 million in cash enhancing liquidity.
• Integration of operations supports efficiency and cost-effectiveness.

Negative

• None.

VANCOUVER, British Columbia, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (the “Company” or “Calibre”) is pleased to announce it is now debt-free after making the final acquisition-related payments of US$15.5 million to B2Gold Corp. (“B2Gold”).

As announced on March 25, 2020, Calibre and B2Gold agreed to defer the payment of the US$10 million “Deferred Acquisition Payment” and the US$5.5 million “Working Capital Adjustment” payment for up to a six-month period from October 15, 2020 to April 15, 2021.

Russell Ball, Chief Executive Officer of Calibre, stated: “I want to once again thank B2Gold for extending the repayment terms when we suspended operations in March due to the pandemic. With a strong third quarter at the operations, significant free cash flow generation and US$56 million on hand at quarter-end, we elected to repay the amounts owed to B2Gold on the original repayment schedule. Because that’s what good partners do.”

About Calibre Mining Corp.

Calibre Mining is a Canadian-listed gold mining and exploration company with two 100%-owned operating gold mines in Nicaragua. The Company is focused on sustainable operating performance and a disciplined approach to growth. Since the acquisition of the Limon, Libertad gold mines and Pavon Gold Project, Calibre has proceeded to integrate its operations into a “Hub-and-Spoke” operating philosophy, whereby the Company can take advantage of reliable infrastructure, favorable transportation costs, and multiple high-grade mill feed sources that can be processed at either Limon or Libertad, which have a combined 2.7 million tonnes of annual mill throughput capacity.

ON BEHALF OF THE BOARD

“Russell Ball”

Russell Ball, Chief Executive Officer

For further information, please contact:
Ryan King
Vice President, Corporate Development & IR
T: 604.628.1012
E: calibre@calibremining.com
W: www.calibremining.com

FAQ

What is the significance of Calibre Mining becoming debt-free?

Becoming debt-free enhances Calibre Mining's financial stability, allowing for more flexibility in operations and growth opportunities.

How did Calibre Mining manage to repay its debt?

Calibre Mining repaid its debt following a strong third quarter, generating significant free cash flow and having US$56 million on hand.

What were the amounts owed by Calibre Mining to B2Gold?

Calibre Mining owed B2Gold US$10 million as a Deferred Acquisition Payment and US$5.5 million as a Working Capital Adjustment, both of which have now been fully paid.

How many gold mines does Calibre Mining operate?

Calibre Mining operates two 100%-owned gold mines in Nicaragua.

What is Calibre Mining's operational strategy?

Calibre Mining employs a 'Hub-and-Spoke' operational strategy to optimize its mining processes and enhance cost-efficiency.