Coeur Mining looks to buy Paramount Gold

30 November 2014 (Last Updated November 30th, 2014 18:30)

US-based silver producer Coeur Mining is in talks to acquire exploration and development company Paramount Gold and Silver.

US-based silver producer Coeur Mining is in talks to acquire exploration and development company Paramount Gold and Silver.

Those close to the matter told Reuters that the latest move enables Coeur Mining to expand its mark in Mexico.

According to sources, the shareholders of Paramount would be paid in Coeur shares under the terms currently being discussed.

The news agency reported that Coeur has a market capitalisation of $425m while Paramount has market capitalisation of $107m.

"Paramount plans to sell its non-Mexican assets into a company that Coeur will own a 4.9% share of."

As part of the transaction, Paramount plans to sell its non-Mexican assets into a company that Coeur will own a 4.9% share of.

The companies have not finalised the further terms of the deal.

Paramount's San Miguel mining project in Northern Mexico is located next to the Palmarejo silver-gold mine of Coeur Mining.

The 100%-owned San Miguel project comprises 40 concessions encompassing more than 140,000ha surrounding Coeur D'Alene Mines' operating Palmarejo mine complex.

Palmarejo mine has both an underground and surface operation located 420km by road south-west of the capital city of Chihuahua and 15km north-west of the town of Témoris.

Coeur Mining also owns the San Bartolomé silver mine in Bolivia, the Kensington gold mine in Alaska, the Rochester silver-gold mine in Nevada and the Endeavor mine in Australia.

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