Coeur Mining secures Mexican antitrust approval for SilverCrest acquisition

Published 01/02/2025, 17:48
Coeur Mining secures Mexican antitrust approval for SilverCrest acquisition

Coeur Mining, Inc. (NYSE:CDE), a precious metals producer with a market capitalization of $2.63 billion and an impressive 154% return over the past year according to InvestingPro, announced today that the Mexican Federal Economic Competition Commission (COFECE) has approved its pending acquisition of SilverCrest Metals Inc (TSX:SIL). This clearance, granted on Thursday, is a significant step towards finalizing the strategic business combination transaction initially announced on October 3, 2024.

The approval by COFECE suggests that the transaction is unlikely to impede competition within Mexico’s mining sector. With this regulatory hurdle cleared, the focus now shifts to the upcoming special meeting of Coeur’s stockholders on February 6, 2025, where a vote will take place to approve the issuance of shares for the acquisition. Additionally, the Supreme Court of British Columbia’s approval is required, with the arrangement’s anticipated closure date set for around February 14, 2025.

This development comes amid legal actions initiated against Coeur Mining, with two complaints filed in New York alleging that the proxy statement for the special meeting omits material information. Coeur has countered these claims, stating the allegations are without merit but has voluntarily supplemented disclosures in the proxy statement to address the issues raised.

The complaints, filed on January 16 and 17, 2025, seek to prevent the arrangement’s completion unless further information is disclosed. Coeur has also received demand letters requesting additional disclosures. While denying the necessity of further disclosures, Coeur has chosen to provide supplemental information to preclude potential nuisances and delays.

The supplemental disclosures provided by Coeur include details on the financial advisors’ opinions and analyses used to evaluate the arrangement, aiming to enhance transparency for stockholders’ decision-making. With the company maintaining a "GOOD" financial health score and showing strong revenue growth of 31% in the last twelve months, InvestingPro data suggests positive momentum ahead of this strategic move.

Investors and stakeholders are advised that the information is based on a press release statement and the definitive proxy statement filed with the U.S. Securities and Exchange Commission. The details provided in this article are intended to offer a factual summary of Coeur Mining’s recent regulatory progress and legal developments related to its acquisition of SilverCrest Metals (NYSE:SILV).

Analysts maintain a positive outlook on the company, with multiple upward earnings revisions for the upcoming period. For deeper insights into Coeur Mining’s financial health and detailed analysis, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Coeur Mining, Inc. has reported a robust third quarter, marking a significant free cash flow inflection point driven by increased production, higher gold and silver prices, and cost reductions. The company also highlighted its ongoing acquisition of Silvercrest, which is expected to enhance its position as a silver industry leader. The company paid down $50 million of its revolving credit facility, with the net debt to EBITDA ratio falling below two times.

Coeur Mining announced the acquisition of Silvercrest, which is expected to close late in the first quarter of 2025. Full-year company-wide guidance ranges have been reconfirmed, with further debt reduction anticipated by year-end. The Rochester mine remains on track to achieve its full-year guidance ranges, contributing to the company’s positive outlook.

The company is focused on the continued optimization of the Rochester mine, closing the Silvercrest acquisition, and planning for the integration of Las Chispas. Coeur Mining anticipates strong production and free cash flow in the fourth quarter, further reducing debt and positioning for a strong 2025. Lastly, the company plans to maintain its cash balance around $77 million in the near term while prioritizing debt repayment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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