Coeur Mining Inc. shares traded 18% higher after the company reported it has agreed to sell its Southern Nevada Holdings to AngloGold Ashanti Ltd. for $150 million in cash. The purchase by AngloGold includes provisions for an additional payment of $50 million if the project is shown to host a total resource of 3.5 million ounces of gold or higher.
Diversified precious metals producer Coeur Mining Inc. (CDE:NYSE) today announced that “it has entered into a definitive agreement with a subsidiary of AngloGold AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) to sell its Crown and Sterling holdings for closing cash consideration of $150 million and deferred cash consideration of $50 million to be paid upon Crown Sterling attaining a total resource of at least 3.5 million gold ounces.”
Coeur Mining advised that the transaction is expected to be finalized in Q4/22 though it remains subject to ordinary customary closing conditions. Coeur Mining’s President and CEO Mitchell J. Krebs noted that “the consideration represents a significant gain on Coeur Mining’s original investment.”
The Sterling and Crown exploration properties are located about 115 miles north of Las Vegas and together encompass a total of 35,500 acres. Sterling is a past-producing open-pit and underground heap leach gold project, and the Crown Block includes four heap-leachable deposits. The report indicated that the two properties lie adjacent to AngloGold’s existing gold projects in Beatty County, Nev.
CEO Krebs commented further, stating, “the divestiture of Crown Sterling unlocks significant value for Coeur stockholders and demonstrates our ongoing commitment to allocating capital into our existing portfolio of near-term core growth projects, highlighted by the Rochester expansion in northern Nevada.”
“Following its recent acquisition of Corvus Gold, AngloGold has consolidated a significant portion of the Beatty district and is the logical operator of a future standalone mining operation in the Beatty district. We look forward to sharing in AngloGold’s future exploration success in this prospective district, Krebs added.”
Coeur Mining is a diversified precious metals producer headquartered in Chicago, Illinois. The company primarily explores gold, silver, zinc, and lead properties in the U.S., Canada, and Mexico and employs a total of about 2,000 people at its projects and offices. The company owns a 100% stake in four development asset properties, including the Palmarejo gold-silver complex in the State of Chihuahua, Mexico, a silver-gold mine in northwestern Nevada (Rochester), and two other gold mines in Alaska (Kensington) and South Dakota (Wharf). In addition, the company also owns interests in several other North American precious metals exploration projects, including its wholly owned underground Silvertip silver-zinc-lead development project in British Columbia, Canada, located just south of the Yukon border.
AngloGold Ashanti is a gold mining company headquartered in Johannesburg, South Africa. The company has a market cap of around US$5.4 billion and owns interests in mining operations in Australia, Africa, and the Americas.
Coeur Mining Inc. began the day with a market cap of around $80.47 million with approximately 280.87 million shares outstanding and a short interest of about 6.5%. CDE shares opened about 2% lower today at $2.85 (-$0.05, -1.75%) from Friday’s $2.85 closing price. The stock has traded today between $2.78 and $3.37 per share and is currently trading at $3.36 (+$0.51, +17.89%).
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