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Why Is New Gold Stock Soaring Monday? - Coeur Mining (NYSE:CDE), New Gold (AMEX:NGD)
The $7 billion all-stock deal will create a top North American precious metals producer with seven mines, generating $3 billion EBITDA and 900,000 ounces of gold annually.
- On Monday, Coeur Mining, Inc. announced it will acquire New Gold Inc. in an all-stock deal valued at approximately $7 billion, with a joint investor call at 8:00 a.m. ET; CDE stock traded down 1.63% to $16.90 premarket.
- The deal creates a new North American senior precious metals producer with a market cap of around $20 billion amid a gold rally this year above US$4,000 per ounce.
- The merger creates a seven-mine portfolio across the U.S., Canada and Mexico, including New Afton mine and Rainy River mine, with production potential of 900,000 ounces of gold, 20 million ounces of silver, and 100 million pounds of copper annually.
- The boards of both companies have unanimously approved the agreement, expected to close in the first half of 2026, pending shareholder, court, and regulatory approvals.
- Mitchell J. Krebs said, `This transaction provides clear and compelling benefits for New Gold and Coeur shareholders by bringing together two companies with similar cultures to create a stronger, more resilient, and larger-scale precious metals mining company,' and Patrick Godin called it `a monumental day for New Gold.
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19 Articles
Coeur Mining buying New Gold and its two Canadian gold mines for US$7B
TORONTO — U.S. gold miner Coeur Mining, Inc. has signed a deal to buy New Gold Inc. and its two gold mines in Canada in an all-stock deal valued at about US$7 billion. Under the agreement, New Gold shareholders will receive 0.4959 shares of Coeur for each New Gold share. The companies say the exchange […]
·Toronto, Canada
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Coeur Mining to Acquire Canada’s New Gold for $7 Billion
Coeur Mining Inc. agreed to acquire New Gold Inc. for about $7 billion in an all-stock deal that consolidates two midsize North American gold producers as surging bullion prices have reignited investor interest in the sector.
·United States
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Coverage Details
Total News Sources19
Leaning Left3Leaning Right1Center3Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
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