Calibre Enters Pre-Commissioning and Commissioning Contract with Reliable Controls Corporation and Executes A Gold Prepayment

VANCOUVER, British Columbia, March 28, 2024 (GLOBE NEWSWIRE) -- Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (“Calibre” or the “Company”) is pleased to announce the Company has entered into a key pre-commissioning and commissioning contract with Reliable Controls Corporation of Salt Lake City (“RCC”) 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. (“Asahi”), 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 Chief Executive Officer 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% of our expected 2024 gold production with deliveries commencing in May 2024.”

Valentine Gold Mine Plant Site as at March 23, 2024

Reliable Controls Corporation
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.

Asahi Gold Prepayment Agreement
On March 27, 2024, Calibre entered into a US$60 million gold prepayment agreement with Asahi, pursuant to which Asahi has advanced a first installment 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 twelve-month period, beginning in May 2024, such ounces determined based on gold forward curve prices averaging $2,239 per ounce. 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 US subsidiaries of the Company and secured by all present and after-acquired property of such US subsidiaries and certain gold and doré of the Company.