For the second day in a row, we’ve got a major transaction on our hands. Hot off the heels of Probe Gold announcing it has reached terms to be acquired by Fresnillo, another Canadian operator is being taken off the market by a foreign firm.
On Monday, Chicago-based Coeur Mining (NYSE: CDE) indicated it has come to terms for the acquisition of New Gold (TSX: NGD) in a transaction that aims to turn Coeur into a cash flowing behemoth and one of the world’s top ten precious metals miners.
But unlike the Probe Gold deal, which was all cash, New Gold shareholders get to participate in the upside of this transaction with Coeur set to use their equity to acquire the gold producer.
Lets dive in.
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