Coeur Mining to Acquire SilverCrest Metals for $1.7 Billion
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Coeur Mining and SilverCrest Metals have entered into a definitive agreement where Coeur will acquire all of the issued and outstanding shares of SilverCrest pursuant to a court-approved plan of arrangement.
Under the terms of the agreement, SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest common share. This implies a total equity value of approximately $1.7 billion based on SilverCrest’s common shares outstanding. Upon completion of the transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63 percent and 37 percent of the outstanding common stock of the combined company, respectively.
“The acquisition of SilverCrest creates a leading global silver company by adding low-cost silver and gold production and significant free cash flow to our rapidly growing production and cash flow driven by the recent expansion of our Rochester silver and gold mine in Nevada,” said Mitchell Krebs, chairman, president, and chief executive officer of Coeur.
“With more than 15 years of experience operating our Palmarejo underground silver and gold operation next door in Chihuahua, we look forward to adding the high-quality Las Chispas mine to create a leading global silver company at a time when the demand for silver in renewable energy and a wide range of electrification end uses is rapidly rising,” added Krebs.
“I’m exceptionally proud of what the SilverCrest team has accomplished over the past nine years taking Las Chispas from discovery to production and creating one of the world’s premier silver operations. Our operational consistency since declaring commercial production in late 2022 is a testament not only to the asset quality, but also our outstanding team and strong stakeholder relationships,” said N. Eric Fier, chief executive officer and director of SilverCrest.
“I feel confident that the Coeur team will extend this track record of success at Las Chispas and believe this transaction is the best opportunity for shareholders to not only receive an immediate premium, but also have the opportunity to become meaningful owners of a growing, multi-asset, U.S.-based, silver and gold company with tremendous upside potential. I am excited to continue to be involved as an ongoing director of Coeur,” added Fier.
Subject to the satisfaction of conditions, the transaction is expected to close in late Q1 2025.
Coeur Mining is a U.S.-based, well-diversified, growing precious metals producer with four wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, and the Wharf gold mine in South Dakota. In addition, the company wholly-owns the Silvertip polymetallic critical minerals exploration project in British Columbia.
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