Coeur To Buy SilverCrest For $11.34/share, SILV Pre-Market Stock Up Over 13%

(RTTNews) - Precious metals miners, Coeur Mining, Inc. (CDE, CDM.TO) and SilverCrest Metals Inc. (SILV) announced on Friday that they have inked a deal through which a subsidiary of Coeur will acquire SilverCrest.

As per the terms, SilverCrest shareholders will receive 1.6022 Coeur shares for each SilverCrest share.

This implies consideration of $11.34 per SilverCrest share, based on the closing price of Coeur on the New York Stock Exchange as of October 3.

This implies a total equity value of around $1.7 billion based on SilverCrest's shares outstanding.

Post transaction, Coeur and SilverCrest shareholders will own around 63 percent and 37 percent of the combined company, respectively.

The transaction is expected to be closed in late first-quarter of 2025.

Mitchell Krebs, CEO of Coeur, said: "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."

Pro forma Coeur expects production of around 21 million ounces of silver for 2025, accounting for around 40 percent of pro forma Coeur's expected total 2025 revenue.

In addition, combined 2025 gold production is projected to reach approximately 432,000 ounces, equal to around 55 million silver equivalent ounces in total.

CDE was trading up by 13.13 percent at $10.51 in the pre-market trade on the NYSE.