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Coeur Mining To Acquire JDS Silver - Quick Facts

Coeur Mining, Inc. (CDE) announced a definitive agreement to acquire privately-owned JDS Silver Holdings, Ltd. and its subsidiary, JDS Silver Inc. The company will pay initial consideration of $200 million, consisting of $146.5 million of cash, $38.5 million of Coeur shares (approximately 4.3 million new shares), and will assume $15 million in existing debt. Additional potential payments of up to $50 million are contingent upon achieving specific future permitting and exploration milestones. Holders of 87% of JDS Silver shares have entered into voting support arrangements with Coeur under which they have agreed to vote in favor of the transaction.

JDS Silver owns the high-grade silver-zinc-lead Silvertip mine located in northern British Columbia, Canada, adding a sixth producing mine to Coeur's North American-focused platform. Upon expected completion of the transaction in late October, Coeur intends to invest $25 - $35 million in surface infrastructure, accelerated underground development and drilling and mill optimization over a six-month period and recommence commercial production by the end of the first quarter of 2018.

"The acquisition of the Silvertip mine represents a unique opportunity to significantly enhance our portfolio of operations and it satisfies all our acquisition criteria - it provides expected near-term, low-cost, high margin cash flow from an attractive jurisdiction and it is accretive on all key operational and financial metrics," said Mitchell Krebs, Coeur's CEO.

Coeur Mining said it intends to use a portion of its existing cash and equivalents, to fund the cash portion of the initial consideration. To further boost its financial flexibility, the company intends to establish a new, $200 million secured revolving credit facility prior to closing of the transaction.

by RTT Staff Writer

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