Coeur Mining Acquiring SilverCrest Metals for $1.7B

Money Bizwiz Team
3 Min Read

**Coeur Mining to Acquire SilverCrest Metals in $1.7 Billion Deal**

Coeur Mining (NYSE:CDE) has announced its acquisition of SilverCrest Metals (TSX:SIL, NYSEAMERICAN:SILV) in a significant deal worth $1.7 billion. This move underscores Coeur’s ambition to establish itself as a prominent global silver producer.

The acquisition will involve the integration of SilverCrest’s Las Chispas mine in Sonora, Mexico, known for its high-grade, low-cost silver and gold operations. Upon completion, Coeur anticipates a silver production of 21 million ounces annually from its five North American mining sites by 2025, in addition to an estimated annual gold output of 432,000 ounces.

Under the terms of the agreement, SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest share. This arrangement values each SilverCrest share at $11.34 based on the closing prices of both companies on October 3, 2024, representing an 18 percent premium over recent trading averages.

Post-acquisition, Coeur shareholders will hold approximately 63 percent of the merged company, with SilverCrest shareholders controlling around 37 percent. Through this deal, Coeur aims to enhance its silver production and operational reach in North America, adding Las Chispas to its portfolio of assets. Las Chispas recently began commercial production in late 2022.

The combined entity will place a strong emphasis on silver, with expectations that silver revenues will contribute 40 percent by 2025. Coeur President and CEO Mitchell Krebs emphasized the strategic significance of the acquisition, noting that SilverCrest’s operational and financial strengths will fortify Coeur’s balance sheet and create avenues for investing in new projects.

Krebs further stated, “With over 15 years of experience operating our Palmarejo underground silver and gold operation next door in Chihuahua, we look forward to adding the high-quality Las Chispas mine to create a leading global silver company at a time when the demand for silver in renewable energy and various electrification applications is rapidly growing.”

The acquisition is slated to conclude by late Q1 2025, pending approval from shareholders of both SilverCrest and Coeur, as well as regulatory clearances in Canada, Mexico, and the US.

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*Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.*

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