(Finance) – Coeur Miningan American precious metals mining company, e SilverCrest Metalsa Canadian company active in the same field, have entered into a definitive agreement under which Coeur will acquire all of the issued and outstanding shares of SilverCrest pursuant to a court-approved settlement plan.
SilverCrest shareholders will receive 1.6022 shares of Coeur common stock for each share of SilverCrest common stock. The exchange ratio implies a consideration of $11.34 per share of SilverCrest common stock, based on the closing price of Coeur common stock on the NYSE on October 3, 2024. This represents a premium of 18% based on volume-weighted average prices of 20 days of Coeur and SilverCrest each to October 3, 2024. This implies a total asset value of approximately $1.7 billion based on outstanding shares of SilverCrest common stock.
Upon completion of the transaction, current Coeur shareholders and SilverCrest shareholders will hold approximately 63% and 37% respectively of the combined company’s outstanding common stock.
“The acquisition of SilverCrest creates a world-leading silver company 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, Nevada, silver and gold mine,” said Mitchell Krebs, CEO of Coeur – Coupled with SilverCrest’s large and growing cash balance and absence of debt, our balance sheet will strengthen substantially from day one. This immediate deleveraging, coupled with the expected significant combined free cash flow, will enable rapid debt repayment and investment in other organic growth opportunities, while providing shareholders with an unparalleled appreciation opportunity.”