US-based precious metals mining company Coeur Mining has signed a definitive agreement to buy all of the issues and outstanding securities of Northern Empire Resources for $90m.
The deal value includes approximately 7.4 million Northern Empire shares currently owned by Coeur.
Northern Empire currently owns the Sterling Gold Project located on an area of land measuring 143km2 in Nevada, US.
Sterling Gold Project features four high-grade heap-leachable deposits combining a total inferred gold resource of approximately 709,000oz averaging 2.23 g/t. The gold deposit is a fully-permitted, past-producing mine.
Other deposits of the project, dubbed Crown Block, have significant exploration potential and its land package includes 17 untested new targets.
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Coeur president and CEO Mitchell Krebs said: “The acquisition of Northern Empire, with its high-grade Sterling Gold Project and large, prospective land package, comes at an opportune time for us to bolster our pipeline with high-quality projects.
“The transaction, which provides a unique opportunity for Coeur to leverage its operational expertise in Nevada, a leading mining jurisdiction, and add expected near-term, high margin production and cash flow with minimal upfront capital, together with significant exploration potential, satisfies all of our acquisition criteria and is accretive on all key financial and operational metrics.”
In addition, the deal will add multiple high-grade oxide gold deposits to Coeur’s development pipeline as well as increases its focus on Nevada.
Following the transaction, Coeur will commence a quick restart of the Sterling Mine as well as explore Crown Block and other targets.