Feb 24 (Reuters) - Canada's Equinox Gold EQX.TO on Sunday said it would acquire all outstanding shares of Calibre Mining CXB.TO in an all-stock deal, aiming to benefit from upcoming Canadian output as gold prices reach record highs.

Under the deal, Calibre shareholders will receive 0.31 Equinox common shares for each Calibre common share held, giving the deal a valuation of C$2.56 billion ($1.80 billion) per Reuters' calculation as of their last close.

The combined company will operate nearly 11 assets, with executives planning to streamline the portfolio.

Greg Smith, Equinox's CEO, said the Caliber's other mines would immediately provide cash flow into the combined company and help with quicker debt reduction.

Smith will retain his position in the new company.

The deal, which is expected to close by the second quarter of this year, includes two of the newest Canadian gold mines: the Greenstone Mine in Ontario, which poured its first gold in May 2024, and the Valentine Gold Mine in Newfoundland & Labrador, nearing completion with first gold pour targeted for mid-2025.

The combined company is projected to produce more than 1.2 million ounces of gold annually when both Canadian mines reach full capacity.

Darren Hall, current chief executive officer of Calibre, will join the new company as President and Chief Operating Officer.

The deal comes as gold prices trade near their record peak of $2,954.69 an ounce, fueled by central bank purchases and inflation hedging, boosting gold miners' earnings. GOL/

However, analysts at TD Cowen see the deal as being at a lower valuation compared to the recent Newmont NEM.N asset sales in North America.

"We would anticipate that some Calibre shareholders will be looking for a higher price which includes a change of control premium. There is potential for a superior bid to emerge," the brokerage said.

Shares of Calibre Mining were down 3.9% in early morning trade.

($1 = 1.4215 Canadian dollars)

(Reporting by Seher Dareen in Bengaluru; Editing by Tasim Zahid)

((Seher.Dareen@thomsonreuters.com; If in India call +91 74832 70128;))