Coeur Mining recently made a significant announcement that it will acquire SilverCrest Metals in a substantial deal worth US$1.7 billion, solidifying its position as a prominent global silver producer. This strategic move involves integrating SilverCrest’s high-grade, low-cost silver and gold mining operation, Las Chispas mine in Sonora, Mexico. Here are some key points to consider about this acquisition:
- Coeur’s silver production is projected to reach 21 million ounces annually by 2025 from five North American mining operations.
- The combined entity is expected to produce approximately 432,000 ounces of gold per year.
- SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest share.
- The per-share valuation for SilverCrest stands at US$11.34, representing an 18 percent premium over recent trading averages.
- Upon completion, Coeur shareholders will own around 63 percent of the combined company, with SilverCrest shareholders holding the remaining 37 percent.
This acquisition aligns with Coeur’s strategic vision to enhance its silver production and operational presence in North America. By integrating Las Chispas mine with its existing assets like the Rochester silver mine in Nevada and the Palmarejo underground mine in Mexico, Coeur aims to create a leading global silver company. The focus on silver operations is set to contribute significantly to the company’s revenues, with silver expected to make up 40 percent of total revenues by 2025.
Mitchell Krebs, President, and CEO of Coeur Mining emphasized the importance of this acquisition for the company’s growth trajectory. Krebs stated that SilverCrest’s operational and financial strength would augment Coeur’s balance sheet and open up avenues for investment in other projects. With the increasing demand for silver in renewable energy and various electrification applications, the timing of this acquisition is crucial.
The transaction is anticipated to close by late Q1 2025, subject to approvals from SilverCrest and Coeur shareholders, as well as regulatory clearances in Canada, Mexico, and the US. Stay tuned for more real-time updates by following @INN_Resource.
In conclusion, the acquisition of SilverCrest Metals by Coeur Mining marks a significant milestone in the global silver mining industry. This strategic move not only enhances Coeur’s operational footprint but also positions the company as a key player in the growing demand for silver in various industries.
