VIDEO: Coeur Mining to grow silver production with $1.7bn acquisition of Silvercrest
Adding Las Chipas makes Coeur a top silver producer in North America, with 21 million ounces of silver and 432,000 ounces of gold annually.
US miner Gold Resource (NYSE American: GORO) said on Wednesday it had inked a deal to acquire Canada’s Aquila Resources Inc. (TSX: AQA) in a $30.9 million transaction that creates a mid-size North American precious and base metals producer.
The Colorado-based miner is buying all Aquila shares for 0.0399 of a GORO share per Aquila share. The exchange ratio represents a consideration of $0.09 per Aquila share, or $30.9 million, reflecting a premium of 12.5%, based on the closing price of Aquila and Gold Resource shares on September 3, 2021.
Once the transaction closes, which is expected to happen in late November, existing GORO and Aquila shareholders will own roughly 85.1% and 14.9%, respectively, of the combined company.
The new miner is expected to become a new intermediate gold producer following the start of production at Aquila’s Back Forty gold, zinc and copper project in Michigan.
Back Forty, Aquila’s flagship project, contains approximately 1.1 million ounces of gold and 1.2 billion pounds of zinc in the Measured and Indicated Mineral Resource classifications, with additional upside potential.
The company has one exploration project — Reef Gold project located in Marathon County, Wisconsin. On Tuesday, it completed the sale of the other exploration asset it had — Bend and Reef properties in Wisconsin — to Green Light Metals for C$7 million ($5.56m).
Gold Resource has the Don David gold mine in Oaxaca, Mexico, where it also holds a 100% ownership stake in six potential high-grade gold and silver properties.
