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Coeur Mining to Acquire Silvertip Mine for $250 Million, Canada

Published: September 13, 2017 |

[Click image to enlarge]

[Click image to enlarge]

Coeur Mining has signed an agreement to acquire JDS Silver Holdings and its wholly-owned subsidiary JDS Silver for around $250m.

The deal allows Coeur to own JDS Silver’s high-grade silver-zinc-lead Silvertip mine in northern British Columbia, Canada.

As per terms of the deal, Coeur will pay an initial consideration of $200m, including $146.5m cash and $38.5m worth Coeur shares. It will also assume $15m existing debt.

Denham will also secure an additional $50m based on the achievement of certain performance-linked measures.

Silvertip is the new mine with a silver- equivalent indicated resource grade of 1,166g per tonne (g/t), including 352 g/t silver, 9.4 percent zinc and 6.7 percent lead.

The mine is also said to include a silver-equivalent inferred resource grade of 1,155 g/t, comprising of 343 g/t silver, 9.8 percent zinc, and 6.2 percent lead.

Subject to customary regulatory approvals and other closing conditions, the deal is expected to complete by the end of October this year.

JDS Silver CEO Jeff Stibbard said: “Denham’s flexible approach, which included the use of both debt and equity to fund development capital, and strategic guidance combined with our development and operational capabilities enabled us to expedite the construction and development of the Silvertip Mine into production.”

Coeur Mining President and CEO Mitchell Krebs said: “The acquisition of the Silvertip mine represents a unique opportunity to significantly enhance our portfolio of operations and it satisfies all our acquisition criteria – It provides expected near-term, low-cost, high margin cash flow from an attractive jurisdiction and it is accretive on all key operational and financial metrics.”

Source: Energy Business Review


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