SilverCrest Announces Mailing and Filing of Meeting Materials for Special Meeting of Securityholders to Approve Proposed Plan of Arrangement with Coeur Mining
SilverCrest Metals announced the filing and mailing of meeting materials for a special meeting regarding the proposed arrangement with Coeur Mining. Under the arrangement, SilverCrest shareholders will receive 1.6022 Coeur shares for each SilverCrest share, representing US$11.34 per share and an 18% premium based on 20-day volume-weighted average prices as of October 3, 2024.
The total equity value is approximately US$1.7 billion. After completion, existing Coeur stockholders and SilverCrest shareholders will own 63% and 37% of the combined company, respectively. The combined entity is expected to generate approximately US$700 million in EBITDA and US$350 million in free cash flow in 2025.
The special meeting will be held on February 6, 2025, with a proxy voting deadline of February 4, 2025. The Board unanimously recommends shareholders vote FOR the arrangement.
SilverCrest Metals ha annunciato la presentazione e l'invio dei materiali per una riunione speciale riguardante l'arrangiamento proposto con Coeur Mining. In base all'arrangiamento, gli azionisti di SilverCrest riceveranno 1.6022 azioni di Coeur per ogni azione di SilverCrest, equivalente a 11,34 dollari USA per azione e a un premio del 18% basato sui prezzi medi ponderati per volume degli ultimi 20 giorni al 3 ottobre 2024.
Il valore totale dell'equità è di circa 1,7 miliardi di dollari USA. Dopo il completamento, gli azionisti esistenti di Coeur e gli azionisti di SilverCrest possederanno rispettivamente il 63% e il 37% della società combinata. Si prevede che l'entità combinata genererà circa 700 milioni di dollari USA in EBITDA e 350 milioni di dollari USA in flusso di cassa libero nel 2025.
La riunione speciale si terrà il 6 febbraio 2025, con una scadenza per il voto per delega del 4 febbraio 2025. Il Consiglio raccomanda all'unanimità agli azionisti di votare a favore dell'arrangiamento.
SilverCrest Metals anunció la presentación y envío de materiales para una reunión especial sobre el acuerdo propuesto con Coeur Mining. Según el acuerdo, los accionistas de SilverCrest recibirán 1.6022 acciones de Coeur por cada acción de SilverCrest, lo que representa 11.34 dólares EE.UU. por acción y una prima del 18% basada en los precios promedio ponderados por volumen de los últimos 20 días hasta el 3 de octubre de 2024.
El valor total de capital es de aproximadamente 1.7 mil millones de dólares EE.UU.. Tras la finalización, los accionistas existentes de Coeur y los accionistas de SilverCrest poseerán el 63% y el 37% de la empresa combinada, respectivamente. Se espera que la entidad combinada genere aproximadamente 700 millones de dólares EE.UU. en EBITDA y 350 millones de dólares EE.UU. en flujo de caja libre en 2025.
La reunión especial se llevará a cabo el 6 de febrero de 2025, con una fecha límite para el voto por poder del 4 de febrero de 2025. El Consejo recomienda unánimemente a los accionistas votar a favor del acuerdo.
SilverCrest Metals는 Coeur Mining과의 제안된 합의에 대한 특별 회의 자료 제출 및 발송을 발표했습니다. 이 합의에 따라 SilverCrest 주주들은 각 SilverCrest 주식당 1.6022개의 Coeur 주식을 받으며, 이는 주당 11.34달러를 의미하고 2024년 10월 3일 기준으로 20일 평균 거래량 가중 가격을 바탕으로 한 18%의 프리미엄을 나타냅니다.
총 자본 가치는 약 17억 달러입니다. 완료 후, 기존 Coeur 주주와 SilverCrest 주주는 각각 63%와 37%를 소유하게 됩니다. 합병된 실체는 2025년에 약 7억 달러의 EBITDA 및 3억 5천만 달러의 자유 현금 흐름을 생성할 것으로 예상됩니다.
특별 회의는 2025년 2월 6일에 열리며, 대리 투표 마감일은 2025년 2월 4일입니다. 이사회는 주주들에게 합의에 찬성 투표를 할 것을 unanimous하게 권장합니다.
SilverCrest Metals a annoncé le dépôt et l'envoi des documents pour une réunion spéciale concernant l'arrangement proposé avec Coeur Mining. Dans le cadre de l'arrangement, les actionnaires de SilverCrest recevront 1,6022 actions de Coeur pour chaque action de SilverCrest, représentant 11,34 dollars américains par action et une prime de 18 % basée sur les prix moyens pondérés par le volume sur 20 jours au 3 octobre 2024.
La valeur totale des fonds propres est d'environ 1,7 milliard de dollars américains. Après la réalisation, les actionnaires existants de Coeur et les actionnaires de SilverCrest posséderont respectivement 63 % et 37 % de la société combinée. L'entité combinée devrait générer environ 700 millions de dollars américains en EBITDA et 350 millions de dollars américains en flux de trésorerie libre en 2025.
La réunion spéciale se tiendra le 6 février 2025, avec une date limite de vote par procuration fixée au 4 février 2025. Le conseil recommande à l'unanimité aux actionnaires de voter EN FAVEUR de l'arrangement.
SilverCrest Metals hat die Einreichung und den Versand von Versammlungsunterlagen für eine außerordentliche Versammlung bezüglich der vorgeschlagenen Vereinbarung mit Coeur Mining bekannt gegeben. Im Rahmen der Vereinbarung erhalten die Aktionäre von SilverCrest 1,6022 Coeur-Aktien für jede SilverCrest-Aktie, was 11,34 US-Dollar pro Aktie entspricht und eine Prämie von 18% auf Basis der über die letzten 20 Tage gewogenen durchschnittlichen Preise bis zum 3. Oktober 2024 darstellt.
Der gesamte Eigenkapitalwert beträgt etwa 1,7 Milliarden US-Dollar. Nach dem Abschluss werden die bestehenden Aktionäre von Coeur und die Aktionäre von SilverCrest 63% bzw. 37% des zusammengelegten Unternehmens besitzen. Es wird erwartet, dass das zusammengelegte Unternehmen etwa 700 Millionen US-Dollar EBITDA und 350 Millionen US-Dollar freien Cashflow im Jahr 2025 generieren wird.
Die außerordentliche Versammlung findet am 6. Februar 2025 statt, mit einer Frist für die Stimmabgabe per Vollmacht am 4. Februar 2025. Der Vorstand empfiehlt einstimmig, dass die Aktionäre dem Arrangement zustimmen.
- Premium of 18% offered to shareholders based on 20-day VWAP
- Expected US$700M EBITDA and US$350M free cash flow in 2025 for combined company
- 40% expected reduction in Coeur's leverage ratio upon closing
- Enhanced market presence and liquidity through larger combined entity
- Asset diversification reduces single-mine risk
- Dilution of existing shareholders' ownership to 37% in combined company
- Loss of pure-play exposure to Las Chispas mine
Insights
The proposed $1.7 billion merger between SilverCrest and Coeur Mining represents a strategic consolidation in the precious metals sector. The 1.6022 exchange ratio offering a 22% premium to SilverCrest shareholders indicates strong value recognition. The transaction's structure, giving SilverCrest shareholders a 37% stake in the combined entity, provides significant upside exposure while addressing single-asset risk concerns.
The merger's timing aligns with sector consolidation trends, as companies seek operational synergies and balance sheet optimization. The integration of Las Chispas into Coeur's portfolio strategically diversifies production while maintaining cost efficiency. The projected $700 million EBITDA and $350 million free cash flow for 2025 suggest robust financial metrics post-merger.
This merger strategically combines SilverCrest's high-grade Las Chispas operation with Coeur's diversified portfolio, creating a stronger precious metals producer. The consolidation addresses critical operational aspects: geographical diversification, technical expertise pooling and enhanced production scale. The integration of Las Chispas with Coeur's recently expanded Rochester mine and Palmarejo operations positions the combined entity for significant silver production growth in 2025.
The deal's structure intelligently leverages SilverCrest's debt-free balance sheet to improve Coeur's financial position, with an expected 40% reduction in leverage ratio. This financial engineering aspect, combined with the operational synergies, creates a more resilient entity better positioned to weather market cycles.
The transaction's risk-reward profile is notably favorable for both parties. For SilverCrest shareholders, the deal mitigates single-asset risk while maintaining substantial upside through a 37% ownership in a larger, more diversified entity. The immediate premium and enhanced liquidity provide tangible benefits, while the combined company's stronger market position offers better access to capital markets.
The projected reduction in Coeur's leverage ratio addresses a key financial risk, while the combined entity's enhanced cash flow profile improves overall financial stability. The unanimous board approval and support from multiple independent fairness opinions validate the transaction's valuation and strategic rationale.
The Board of Directors of SilverCrest unanimously recommends that Securityholders vote FOR the Arrangement Resolution.
Securityholders are encouraged to vote in advance of the proxy cutoff of 10:00 a.m. (
TSX: SIL | NYSE American: SILV
The Meeting is to be held on February 6, 2025 at 10:00 a.m. (
At the Meeting, Securityholders will be asked to pass a special resolution (the "Arrangement Resolution") approving an arrangement (the "Arrangement") with Coeur Mining, Inc. ("Coeur"), whereby SilverCrest shareholders will receive 1.6022 shares of Coeur common stock for each SilverCrest Share held (the "Exchange Ratio") pursuant to the terms of an arrangement agreement entered into between SilverCrest and Coeur on October 3, 2024 (the "Arrangement Agreement"). The Exchange Ratio represents an implied value of
Benefits to SilverCrest Securityholders
- Immediate and significant premium of approximately
18% based on the 20-day volume-weighted average prices of Coeur and SilverCrest respectively (as at October 3, 2024 on the NYSE and NYSE American, respectively), and22% based on the October 3, 2024 closing prices of both companies - Substantial equity participation in Coeur's high quality and diversified portfolio consisting of four robust operating mines in
U.S. andMexico and an exploration property inCanada , while maintaining meaningful exposure to the Company's high-grade, low-cost and high-margin Las Chispas operation - Potential for the combined company to generate significant 2025 silver production with the addition of Las Chispas to Coeur's growing silver production from its recently expanded
Rochester mine inNevada and its Palmarejo underground mine in northernMexico - Approximately
US 1 of EBITDA2 and$700 million US 1 of free cash flow2 are expected to be generated by the combined company in 2025 at lower overall costs and higher overall margins for Coeur, with more robust cash flow as a result of multiple producing mines in a diversified portfolio and augmented by SilverCrest's strong balance sheet and no debt$350 million - The combination of SilverCrest's strong balance sheet and its strong cash flow profile are expected to accelerate Coeur's debt reduction initiative and result in an immediate
40% expected reduction in Coeur's leverage ratio upon closing of the Arrangement - The Arrangement with Coeur is the culmination of a comprehensive strategic review process overseen by the Company's board of directors (the "Board") initially, and subsequently, the special committee of independent directors (the "Special Committee"), as further described in the Circular
- The combined company will be better positioned to pursue a growth and value maximizing strategy as compared with SilverCrest on a standalone basis, as a result of the combined company's larger market capitalization, asset and geographical diversification, elimination of singe asset risk, technical expertise, greater trading liquidity, enhanced access to capital over the long term and the likelihood of increased investor interest and access to business development opportunities due to the combined company's larger market presence
Board Recommendation
The Board, based on its considerations, investigations and deliberations, including a thorough review of the Arrangement Agreement, the fairness opinions of Cormark Securities Inc. and Raymond James Ltd. and other relevant matters, and taking into account the best interests of the Company, and after consultation with management and its financial and legal advisors and having received the unanimous recommendation of the Special Committee, which takes into account, among other things, the fairness opinion that the Special Committee received from Scotiabank, has unanimously determined, that the Arrangement and the entering into of the Arrangement Agreement are in the best interests of the Company, has unanimously approved the Arrangement and recommends that the Securityholders vote FOR the Arrangement Resolution. The determination of the Special Committee and the Board is based on various factors set forth above and described more fully in the Circular.
YOUR VOTE IS IMPORTANT. CAST YOUR VOTE WELL IN ADVANCE OF THE PROXY VOTING DEADLINE.
Securityholders are encouraged to read the Circular in its entirety and vote their SilverCrest Shares and stock options as soon as possible, in accordance with the instructions accompanying the form of proxy or voting instruction form mailed to Securityholders together with the Circular.
The deadline for voting SilverCrest Shares and stock options by proxy is 10:00 a.m. (
How to Vote
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1 Based on analyst consensus for 2025. | |
2 This is a non-GAAP performance measure. See "Non-GAAP and Non-IFRS Financial Measures" at the end of this press release, and "Non-GAAP Financial Performance Measures" on page 54 of Coeur's 2023 Annual Report.
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Questions & Voting Assistance
Securityholders who have questions about the Meeting or require assistance in voting may contact the Company's proxy solicitation agent:
Laurel Hill Advisory Group
North American Toll Free | 1-877-452-7184
Outside
By Email | assistance@laurelhill.com
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals producer headquartered in
Non-GAAP and Non-IFRS Financial Measures
This press release contains certain non-GAAP and non-IFRS financial measures, which management believes may enable investors to better evaluate Coeur's and SilverCrest's performance, liquidity and ability to generate cash flow. These measures do not have any standardized definition under
Free Cash Flow
Free cash flow subtracts sustaining capital expenditures from net cash provided by operating activities, serving as an indicator of the capacity to generate cash from operations post-sustaining capital investments.
EBITDA
EBITDA represents net earnings or loss for the period before income tax expense or recovery, depreciation and amortization, and finance costs.
Forward-Looking Statements
This news release contains "forward-looking statements" and "forward-looking information" (collectively "forward-looking statements") within the meaning of applicable Canadian and
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, the possibility that securityholders of SilverCrest may not approve the Arrangement or stockholders of Coeur may not approve the stock issuance or the charter amendment; the risk that any other condition to closing of the Arrangement may not be satisfied; the risk that the closing of the Arrangement might be delayed or not occur at all; the risk that the either Coeur or SilverCrest may terminate the Arrangement Agreement and either Coeur or SilverCrest is required to pay a termination fee to the other party; potential adverse reactions or changes to business or employee relationships of Coeur or SilverCrest, including those resulting from the announcement or completion of the Arrangement; the diversion of management time on transaction-related issues; the ultimate timing, outcome and results of integrating the operations of Coeur and SilverCrest; the effects of the business combination of Coeur and SilverCrest, including the combined company's future financial condition, results of operations, strategy and plans; the ability of the combined company to realize anticipated synergies in the timeframe expected or at all; changes in capital markets and the ability of the combined company to finance operations in the manner expected; the risk that Coeur or SilverCrest may not receive the required stock exchange and regulatory approvals of the Arrangement; the expected listing of shares on the NYSE; the risk of any litigation relating to the proposed Arrangement; the risk of changes in governmental regulations or enforcement practices; the effects of commodity prices, life of mine estimates; the timing and amount of estimated future production; the risks of mining activities; and the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the Arrangement. Expectations regarding business outlook, including changes in revenue, pricing, capital expenditures, cash flow generation, strategies for the combined company's operations, gold and silver market conditions, legal, economic and regulatory conditions, and environmental matters are only forecasts regarding these matters.
Additional factors that could cause results to differ materially from those described above can be found in SilverCrest's annual information form for the year ended December 31, 2023, which is on file with the SEC and on SEDAR+ and available from SilverCrest's website at www.silvercrestmetals.com under the "Investors" tab, and in other documents SilverCrest files with the SEC or on SEDAR+. All forward-looking statements speak only as of the date they are made and are based on information available at that time. SilverCrest does not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by applicable securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
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SOURCE SilverCrest Metals Inc.
FAQ
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