Coeur Mining Acquires New Gold’s Canadian Operations in $7 Billion Deal
Coeur Mining, Inc., a prominent U.S. gold miner, has made significant strides in the mining industry with its recent acquisition of New Gold Inc. This strategic move includes two key Canadian gold mines, valued at approximately $7 billion (USD). The agreement is structured as an all-stock deal.
Details of the Acquisition
Under the acquisition agreement, shareholders of New Gold will receive 0.4959 shares of Coeur for each share they own. This exchange ratio indicates a value of around $8.51 per New Gold share, based on Coeur’s closing stock price on October 31.
Shareholder Distribution
- Existing Coeur shareholders will retain around 62% of the merged entity.
- New Gold shareholders will make up approximately 38% of the new company.
Overview of New Gold’s Assets
New Gold operates two notable mines in Canada: the Rainy River mine located in Ontario and the New Afton mine in British Columbia. These operations are set to enhance Coeur’s portfolio significantly.
Future Production Goals
The merger aims to establish a robust combined company that will manage seven mining operations. By 2026, the new entity is projected to yield approximately 1.25 million gold equivalent ounces per year. This total includes:
- 20 million ounces of silver
- 900,000 ounces of gold
This acquisition not only demonstrates Coeur Mining’s ambition for growth but also reinforces its position in the Canadian mining sector.
