On 12th October 2024, US-based Coeur Mining announced its agreement to acquire Canadian firm SilverCrest Metals for approximately $1.7 billion, creating a leading global silver company amid rising demand for silver, according to Reuters.

The announcement was made by Mines Minister Paul Kabuswe, who outlined the government’s strategy to leverage Zambia’s position as Africa’s second-largest copper producer and its significant deposits of other critical minerals crucial for the global energy transition.

Under the terms of the deal, SilverCrest shareholders will receive 1.6022 Coeur ordinary shares for each share they hold, valuing SilverCrest at about $11.34 per share. The merger is projected to produce around 21 million ounces of silver in 2025, with Coeur’s US-based mines contributing 56% of total revenue and approximately 432,000 ounces of gold.

The acquisition includes SilverCrest’s high-grade Las Chispas mine in Mexico, enhancing Coeur’s portfolio with low-cost, high-margin production. This year, Coeur has already sold approximately 10.25 million silver equivalent ounces. Financially, the acquisition is expected to significantly boost Coeur’s EBITDA to $700 million and free cash flow to $350 million by 2025. SilverCrest CEO N. Eric Fier and another director will join Coeur’s board post-merger.

Coeur’s chairman, Mitchell J. Krebs, emphasised that the acquisition strengthens their position with low-cost production and a robust cash flow, enhancing the company’s balance sheet from day one. The board has unanimously approved the transaction. Assuming all conditions are met, the completion of the merger between Coeur and SilverCrest is anticipated to occur towards the end of the first quarter in 2025.

Source: https://www.mining-technology.com/news/coeur-acquire-silvercrest/?cf-view