NYSE-listed Coeur Mining has wrapped up the acquisition of Northern Empire Resources, bolstering its project pipeline.
Northern Empire’s principal asset is the fully permitted, past producing Sterling gold mine, which has an inferred gold resource of about 709 000 oz averaging 2.23 g/t. The company’s remaining deposits are collectively known as the Crown Block.
“Restarting the Sterling openpit mine will allow us to add near-term, high-margin production and cash flow with minimal expected upfront capital, while the significant exploration potential at the Crown Block offers the opportunity for a second, larger future operation that can create significant, long-term stockholder value. Additionally, we believe that the strategic timing of prudent acquisitions, such as Northern Empire, provides meaningful upside potential for the company,” president and CEO Mitchell Krebs said on Monday.
The Sterling project comprises a 14 300-ha land package, about 185 km north of Las Vegas, Nevada.
Under the terms of the arrangement, each issued and outstanding common share of Northern Empire not already owned by Coeur was exchanged for 0.1850 shares of Coeur common stock and holders of outstanding in-the-money Northern Empire options and warrants received shares of Coeur common stock based on the same exchange ratio. Upon closing of the arrangement, Coeur had about 199.2-million shares of common stock outstanding.