Coeur Mining, Inc. (NYSE: CDE), a prominent precious metals producer with a market capitalization of $2.63 billion, has successfully cleared a significant regulatory milestone in its pursuit of acquiring SilverCrest Metals Inc. (TSX: SIL).
On February 3, 2025, the Mexican Federal Economic Competition Commission (COFECE) granted approval for the merger, marking a crucial step in Coeur’s strategic move to enhance its position in the global silver market.
This approval, granted on Thursday, paves the way for the completion of the business combination announced on October 3, 2024. The COFECE’s decision signals that the acquisition will not disrupt competition within Mexico’s mining sector, ensuring a smooth progression of the deal. Coeur now shifts its focus to finalizing shareholder approval, with a special meeting scheduled for February 6, 2025, where Coeur stockholders will vote on the issuance of shares related to the acquisition. In addition, the arrangement requires the approval of the Supreme Court of British Columbia, with the deal’s anticipated closure set for around February 14, 2025.
Despite the regulatory green light from COFECE, Coeur has faced legal challenges from two complaints filed in New York. These complaints, which were submitted on January 16 and 17, 2025, allege that Coeur’s proxy statement omits material information crucial for stockholders’ decision-making. Coeur, in response, has denied these allegations, asserting that the claims lack merit. Nevertheless, the company has proactively provided additional disclosures in the proxy statement to address concerns raised by the complaints, reinforcing its commitment to transparency and mitigating potential delays in the acquisition process.
Coeur’s decision to supplement the disclosures includes providing detailed financial advisor opinions and analyses to help stockholders better understand the strategic and financial implications of the merger. This move is intended to foster a more informed vote at the special meeting and maintain positive momentum toward the deal’s finalization.
A Transformative Merger in the Silver Industry
The acquisition of SilverCrest will significantly bolster Coeur Mining’s position within the silver industry. The deal will combine Coeur’s growing silver production from its Rochester and Palmarejo mines with SilverCrest’s high-grade Las Chispas operation in Sonora, Mexico. This combination is expected to generate an impressive 21 million ounces of silver in 2025, propelling the newly merged company to a peer-leading production level. Additionally, the combined entity is projected to produce approximately 432,000 ounces of gold in the same year.
The strategic acquisition also comes with a major financial advantage. Coeur expects to benefit from the strong cash flow generated by SilverCrest’s operations, which includes a solid balance sheet with $122 million in treasury assets and no outstanding debt. This positions Coeur to significantly reduce its leverage ratio, further accelerating its deleveraging initiatives and improving its financial stability.
Legal Developments and Shareholder Approval Process
With COFECE’s approval in hand, the transaction now hinges on securing shareholder approval during the special meeting on February 6, 2025. SilverCrest’s Board of Directors has unanimously recommended that shareholders and optionholders vote “FOR” the arrangement. In addition, the deal remains subject to the approval of the court and other regulatory requirements, but it is expected to close by mid-February 2025. Upon closure, SilverCrest’s shares will be delisted from both the Toronto Stock Exchange and NYSE American.
The merger is poised to create a formidable global silver powerhouse, driven by Coeur’s expansive operations and SilverCrest’s industry-leading Las Chispas mine. Coeur’s shareholders will receive 1.6022 Coeur shares for each SilverCrest share they hold, solidifying the combination as a significant step in Coeur’s goal to build a leading silver-focused mining company.
Future Outlook for Coeur Mining
Looking ahead, Coeur Mining anticipates continued strong performance throughout the fourth quarter of 2025. The company’s robust third-quarter results highlight increased production, favorable commodity prices, and cost reductions, positioning the firm for a strong finish to the year. The completion of the SilverCrest acquisition is expected to contribute significantly to Coeur’s growth trajectory, enhancing both its silver and gold production capabilities.
As Coeur integrates SilverCrest into its portfolio, it will also focus on optimizing operations at its key mines, including the Rochester and Las Chispas projects. Additionally, Coeur has reaffirmed its commitment to responsible environmental, social, and governance (ESG) practices, emphasizing water usage management, emission reductions, and community development initiatives as it builds a more sustainable and profitable business.
Investors and stakeholders alike are encouraged to monitor the ongoing regulatory and legal proceedings surrounding the acquisition. Coeur Mining remains poised for a strong 2025 as it combines with SilverCrest to take a leadership position in the global silver mining sector.
