Precious metals miners Coeur Mining, Inc. (CDE, CDM.TO) and SilverCrest Metals Inc. (SILV) have announced that they have reached an agreement whereby a subsidiary of Coeur will acquire SilverCrest.
According to the agreement's stipulations, shareholders of SilverCrest will obtain 1.6022 shares of Coeur for every SilverCrest share they own.
This transaction values each SilverCrest share at $11.34, based on Coeur's closing stock price on the New York Stock Exchange as of October 3.
This arrangement implies a total equity valuation of approximately $1.7 billion, considering SilverCrest's outstanding shares.
Following the transaction, Coeur's shareholders will hold around 63 percent of the merged entity, while SilverCrest's shareholders will control roughly 37 percent.
The acquisition is anticipated to be finalized in the latter part of the first quarter of 2025.
Mitchell Krebs, Coeur's CEO, stated: "The acquisition of SilverCrest establishes a leading global silver company by incorporating low-cost silver and gold production, coupled with substantial free cash flow, into our rapidly expanding production and cash flow, enhanced by our recent expansion of the Rochester silver and gold mine in Nevada."
The combined entity is projected to produce approximately 21 million ounces of silver in 2025, contributing to about 40 percent of the pro forma revenue expected for that year.
Moreover, the combined gold production for 2025 is forecasted to reach around 432,000 ounces, which equates to approximately 55 million silver equivalent ounces in total.
In pre-market trading on the NYSE, Coeur's stock was up 13.13 percent at $10.51.
