VANCOUVER — U.S.-based Coeur Mining (NYSE: CDE) is coming to British Columbia pending a US$200-million cash-and-shares deal for JDS Silver and the fledgling Silvertip silver-zinc-lead mine 16 km south of the Yukon border.
The company plans to close the underground operation for around six months to optimize its mine plan, and pursue permit amendments to boost throughput from 500 tonnes to 1,000 tonnes per day.
Coeur will pay US$146.5 million in cash, US$38.5 million in shares, and assume US$15 million in outstanding debt. Furthermore, the company has committed to additional payments of US$50 million contingent on achieving specific future permitting and exploration milestones.
JDS Silver is a private mining subsidiary of engineering firm JDS Energy and Mining, which bought the asset from Silvercorp Metals (TSX: SVM) for $15.5 million in late 2013. The company is backed by U.S. private equity firm Denham Capital, which invested US$65 million in Silvertip in October 2016.
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