SilverCrest Metals has secured approval from Mexico’s Comisión Federal de Competencia Económica (COFECE) for its acquisition by Coeur Mining, marking a significant step in the path towards the completion of the $1.7 billion (C$2.45 billion) deal. The acquisition will see SilverCrest shareholders receive 1.6022 Coeur shares for each SilverCrest share held, valuing each SilverCrest share at $11.34.
Following the acquisition, the combined entity will see Coeur and SilverCrest shareholders owning approximately 63% and 37% of the company, respectively. SilverCrest’s CEO, N. Eric Fier, expressed satisfaction at reaching this milestone, emphasising that COFECE’s approval was a key regulatory hurdle. He described the approval as a significant step toward building a leading global silver company through the transaction with Coeur.
The definitive agreement for the acquisition was signed in October 2024, and the deal is set to provide the combined company with increased production, enhanced diversification, and expanded growth opportunities. One of the key assets in the transaction is SilverCrest’s Las Chispas underground mine in Sonora, Mexico, which ranks among the world’s highest-grade, lowest-cost, and highest-margin silver and gold operations. This addition will complement Coeur’s existing assets, including the expanded Rochester mine in Nevada, US, and the Palmarejo mine in Mexico.
The merger is expected to boost the combined company’s silver production to approximately 21 million ounces (oz) in 2025. Additionally, the company is forecast to produce around 432,000 ounces of gold in the same year. The transaction will also provide an immediate boost to Coeur’s free cash flow and is projected to result in a 40% reduction in the company’s leverage ratio.
Once necessary approvals are obtained, the transaction will lead to SilverCrest’s delisting from the Toronto Stock Exchange and NYSE American. The deal is expected to close on February 14, 2025, following the approval of SilverCrest’s securityholders at a meeting scheduled for February 6, 2025, and the approval of the court.
