Coeur Mining, Inc. (NYSE: CDE) has agreed to acquire JDS Silver Holdings, Ltd. and its wholly-owned subsidiary, JDS Silver Inc. from Denham Capital, Jeff Stibbard and other shareholders for up to US $250 million.
Coeur Mining will pay initial consideration of US $200 million, consisting of US $146.5 million of cash, US $38.5 million of Coeur shares (approximately 4.3 million new shares), and will assume US $15 million in existing debt. Additional potential payments of up to US $50 million are Contingent upon achieving specific future permitting and exploration milestones at Silvertip.
Denham Capital will retain an existing royalty on the property.
JDS Silver owns Silvertip Mine, a high-grade silver-zinc-lead Silvertip mine located in northern British Columbia, Canada. JDS Silver began construction in December 2015 and began production in October 2016.
The transaction, which is expected to close before the end of October, is subject to customary regulatory approvals and other closing conditions.
Coeur’s legal advisor is Goodmans LLP and its financial advisor is Sprott Capital Partners. JDS Silver’s legal advisors are Blake, Cassels & Graydon LLP and Bennett Jones LLP and its financial advisor is Maxit Capital.
Denham Capital is a leading natural resources-focused global private equity firm with more than 9 billion of invested and committed capital across nine fund vehicles and offices in Houston, London, Boston and Perth.
Denham Capital initially invested in JDS Silver in 2015 and had provided US $65 million to complete construction and bring into production.
“Denham’s flexible approach, which included the use of both debt and equity to fund development capital, and strategic guidance combined with our development and operational capabilities enabled us to expedite the construction and development of the Silvertip Mine into production. We are very proud of our partnership and what we accomplished together,” said Jeff Stibbard, JDS Silver CEO.
photo credit: JDS Silver