Coeur Mining Inc (TSX:CDM) and New Gold Inc. (TSX:NGD) have announced a definitive agreement under which Coeur will acquire all outstanding shares of New Gold in an all-stock transaction valued at approximately $7 billion.
The deal positions the new entity among the top 10 global precious metals producers and top five silver producers, with enhanced market liquidity and potential inclusion in major US indexes, Coeur said in a statement.
The combined company will have a pro forma market capitalization of about $20 billion and operate seven North American mines.
Production in 2026 is expected to reach approximately 1.25 million gold equivalent ounces, including 900,000 ounces of gold, 20 million ounces of silver, and 100 million pounds of copper.
The combined entity is projected to generate $3 billion of EBITDA and $2 billion of free cash flow next year.
The management teams from both companies will merge, with New Gold CEO Patrick Godin and one additional director joining Coeur’s board.
Under the deal, New Gold shareholders will receive 0.4959 Coeur shares for each New Gold share, implying $8.51 per share, a 16% premium to New Gold’s October 31 closing price.
Following the acquisition, Coeur shareholders are expected to hold roughly 62% of the combined company, with New Gold shareholders owning approximately 38%.
Shares of Coeur fell 12% to about $15 on the announcement, while New Gold shares were down 1% at about $7.