Coeur Mining Inc. is set to acquire SilverCrest Metals Inc.in an impressive deal that elucidates the growing trend of consolidation in the metals and mining industry. The notable purchase, which has been given the green light by boards of both companies, is expected to cost Coeur Mining a staggering US$1.7 billion.
Under the terms of the agreement, each SilverCrest shareholder will receive 0.9817 shares of Coeur common stock and an additional CDN$0.0001 in cash per SilverCrest common share. The total deal value approximates to $9.17 per SilverCrest common share and signifies a 30% premium based on both company’s closing prices on November 11, 2022. The transaction process will occur via a plan of arrangement under the British Columbia Business Corporations Act.
This acquisition by Coeur Mining represents a momentous decision for the company’s future. As part of their expansion plan, Coeur Mining is seeking to fortify its precious metals portfolio. SilverCrest Metals is well-known for its successful Las Chispas Project in Sonora, Mexico, making it a desirable acquisition for Coeur Mining. This silver and gold project, still in its advanced exploratory stage, is expected to substantially bolster Coeur’s portfolio upon successful integration, positioning itself as a crucial pillar in Coeur’s growth.
Coeur Mining has shown its level of confidence in this investment, emphasizing how the transaction is anticipated to provide immediate and noteworthy benefits to both sets of shareholders. SilverCrest shareholders will unlock substantial immediate and direct value from the transaction. They will maintain continuous exposure to the development and exploration upside of the Las Chispas Project, owing to their substantial interest in Coeur’s enhanced post-deal equity value.
From Coeur’s end, the acquisition is deemed highly strategic, expected to drive superior, risk-adjusted, fully-financed growth. The transaction offers a compelling runway for free cash flow growth and pursuing further capital returns for Coeur shareholders. It is an agreement that bodes well with Coeur’s plan to solidify its position as a leading Western-based precious metals producer.
Expected to close by the second quarter of 2023, this transformational transaction is contingent upon receiving the necessary approvals, including from SilverCrest shareholders, the Supreme Court of British Columbia, and additional customary closing conditions.
The relationship fostered between Coeur and SilverCrest during this merger promises to be a powerful one, with both companies set to achieve mutual benefits. The anticipated acquisition solidifies Coeur Mining’s reputation as an ambitious precious metals enterprise, keen on optimizing resources and maximizing shareholder value.
The deal also signifies the overall trend of consolidation in the mining sector, alongside the notable growth in the value of precious metals. With such industry movements, Coeur Mining’s strategic acquisition of SilverCrest Metals is a clear testament to the potential in the mining industry and the promising future of precious metals.