Coeur Mining to Acquire New Gold and Its Canadian Sites in a Landmark $7 Billion Deal
Coeur Mining, Inc., a prominent U.S. gold mining company, has announced a significant acquisition. The company is set to acquire New Gold Inc. and its two Canadian mines in a landmark all-stock transaction valued at approximately $7 billion.
Details of the Acquisition
Under this deal, New Gold shareholders will receive 0.4959 shares of Coeur Mining for each share they own. This arrangement equates to approximately $8.51 per share for New Gold, using the Coeur shares’ closing price on the New York Stock Exchange on October 31.
Ownership Structure Post-Acquisition
Following the completion of the acquisition, Coeur shareholders will retain around 62% of the combined company. In contrast, New Gold shareholders will hold about 38% of the new entity.
About New Gold’s Operations
- The acquisition includes the Rainy River mine located in Ontario.
- Coeur Mining will also take over the New Afton mine situated in British Columbia.
Future Production Estimates
The newly formed company is expected to have seven operational sites. By 2026, it aims to produce about 1.25 million gold equivalent ounces. This includes projections of 900,000 ounces of gold and 20 million ounces of silver.
This acquisition marks a crucial step for Coeur Mining as it expands its operations and resource base in the competitive gold mining sector.
