Coeur Mining Inc. (NYSE:CDE) is in advanced negotiations with Paramount Gold and Silver Corp for its acquisition. The company intends on expanding its mining footprint in Mexico.
The Negotiations:
The talks between the two companies are the latest sign that indicate low metal prices that are driving the mining companies into consolidation, as the companies strive to lower their cost base, become profitable and expand their deposits. San Miguel mining project of Paramount neighbors Palmarejo silver-gold mine of Coeur in the Northern Mexico. The deal between Coeur and Paramount would enable Palmarejo to continue mining as one of the largest mines producing the highest grade silver and gold in the world for at least another seven years.
Terms of Deal Between Coeur and Paramount:
Shareholders of Paramount would be paid in Coeur (NYSE:CDE) shares under the terms that are being negotiated. Coeur Mining Inc. (NYSE:CDE) and Paramount have the current market capitalization of $425 million and $107 million respectively. Paramount also plans to spin off all of its non-Mexican assets into a standalone company that is publicly. Coeur Mining Inc. would have a 4.9% stake in that new company as a part of the deal.
Mines of the Two Companies:
San Miguel project of Paramount is made up of 40 concessions and it spans more than 350,000 acres around Palmarejo mine complex of Coeur Mining Inc (NYSE:CDE). Other than Palmarejo, Coeur also owns the Rochester silver-gold mine in Nevada, the San Bartolomé silver mine in Bolivia and the Kensington gold mine in Alaska. Winnemucca which is a Nevada-based Paramount owns the Sleeper gold project in Nevada.
Original Article: http://insidetrade.co/coeur-announces-negotiations-paramount/
