Coeur Mining to snap up SilverCrest in $1.7bn deal
Coeur d'Alene Mines Corp.
$6.52
06:00 04/10/24
Coeur Mining has agreed to buy Canada’s SilverCrest Metals in a $1.7bn deal, it was announced on Friday.
The US miner said the deal would create a leading global silver company producing around 21m oz of silver annually.
The deal includes the Las Chispas mine in Sonora, Mexico, one of the world’s highest-grade silver and gold operation. It commenced production in 2022.
Under the terms, SilverCrest shareholders will receive 1.6022 Coeur common shares for each share they own, with an implied value of $11.34 per share. A 22% premium to the 3 October closing price, it implies a total equity value of around $1.7bn.
Upon completion, existing Coeur and SilverCrest shareholders will own around 63% and 37% of the combined business respectively.
Mitchell Krebs, Coeur chief executive, said: "The acquisition creates a leading global silver company by adding low-cost silver and gold production, and significant free cash flow, to our rapidly growling production and cash flow drive by the recent expansion of our Rochester silver and gold mine in Nevada.
"Our balance sheet is expected to be materially strengthened on day one."
Eric Fier, SilverCrest chief executive - who will join Coeur’s board of directors - said: "I’m extremely proud of what the SilverCrest team has accomplished over the past nine years, taking Las Chispas from discovery to production.
"I feel confident that the Coeur team will extend this track record of success at Las Chispas."
The deal is expected to complete late in the first quarter of 2025.
As at 1330 BST, shares in Coeur had lost 6% in pre-market trading, while SilverCrest’s US stock jumped nearly 11%.