Coeur Mining, (Coeur or the Company) (NYSE: CDE) is pleased to announce that it has entered into a definitive agreement (the Arrangement Agreement) to acquire privately-owned JDS Silver Holdings, Ltd. and its wholly-owned subsidiary, JDS Silver (JDS Silver), which owns the high-grade silver-zinc-lead Silvertip mine (Silvertip) located in northern British Columbia, Canada, adding a sixth producing mine to Coeur’s North American-focused platform.
Under the Arrangement Agreement, the Company will pay initial consideration of US$200 million, consisting of US$146.5 million of cash, US$38.5 million of Coeur shares (approximately 4.3 million new shares), and will assume US$15 million in existing debt. Additional potential payments of up to US$50 million are contingent upon achieving specific future permitting and exploration milestones at Silvertip.
Mitchell J. Krebs, Coeur’s President and Chief Executive Officer, commented:
The acquisition of the Silvertip mine represents a unique opportunity to significantly enhance our portfolio of operations and it satisfies all our acquisition criteria it provides expected near-term, low-cost, high margin cash flow from an attractive jurisdiction and it is accretive on all key operational and financial metrics.
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