Coeur Mining Strikes $7B Deal to Acquire New Gold and Expand Canadian Footprint
A major shake-up has just been announced in the gold mining world — U.S.-based Coeur Mining is set to acquire Canada’s New Gold Inc. in an all-stock deal valued at around US$7 billion . This merger isn’t just about size; it’s about reshaping the future of North American mining during one of the strongest gold rallies in recent history.
The deal, confirmed this week, will bring New Gold’s two major Canadian assets — the Rainy River mine in Ontario and the New Afton mine in British Columbia — under Coeur’s growing portfolio. According to both companies, the agreement gives New Gold shareholders 0.4959 shares of Coeur for each New Gold share , effectively valuing each at about US$8.51 , based on Coeur’s closing price on October 31. Once completed, Coeur shareholders will own about 62% of the combined company, while New Gold investors will hold roughly 38% .
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This merger is expected to create a powerhouse producer, operating seven mines and generating around 1.25 million gold-equivalent ounces annually by 2026 — including an estimated 900,000 ounces of gold and 20 million ounces of silver . With gold prices already soaring past $4,000 per ounce this year and forecasted to climb even higher, the timing of this deal couldn’t be more strategic.
Coeur Mining’s CEO, Mitchell J. Krebs , called the move a transformative step for the company. He said the merger would strengthen cash flow and improve efficiency, pushing Coeur into a stronger position in the global market. “With the addition of New Gold’s two Canadian operations to our five existing mines, we expect to generate around $3 billion in EBITDA and $2 billion in free cash flow in 2026 ,” Krebs explained. He noted how this represents a massive turnaround from just two years ago when the company’s full-year EBITDA stood at $142 million and free cash flow was negative.
From New Gold’s side, President and CEO Patrick Godin said the merger offers “immediate value to shareholders” through operational synergies and expanded growth potential. He emphasized that it will accelerate development at the K-Zone at New Afton and enhance exploration at Rainy River , while also broadening the company’s overall asset base.
The merged company is expected to be worth roughly $20 billion , giving it a significant presence across North America, with operations in the U.S., Mexico, and now Canada. Coeur also plans to maintain New Gold’s Toronto office and pursue a Canadian stock listing, signaling its long-term commitment to the region.
This all-stock deal marks one of the largest gold mining mergers in recent years, underscoring a renewed wave of investor confidence in precious metals. As the global demand for gold and silver continues to rise, Coeur Mining’s bold move could set the stage for a new era of consolidation and growth across the mining sector.
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