U.S.-based Coeur Mining has entered into a definitive agreement to acquire North American peer SilverCrest Metals, adding the Las Chispas underground mine in Sonora, Mexico, to its portfolio.
Under the terms of the agreement, a wholly-owned subsidiary of Coeur will acquire all of the issued and outstanding shares of SilverCrest pursuant to a court-approved plan of arrangement. The transaction is valued at $1.7 billion.
“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 J. Krebs, chairman, president and CEO of Coeur.
“With over 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.”
Upon closing, current SilverCrest CEO and Director N. Eric Fier and one other current SilverCrest director will join Coeur’s board, adding extensive and relevant experience to an already distinguished board of directors.
Coeur currently owns four 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.
Source: Coeur Mining