A diversified precious metals producer, with significant operations across North America, has acquired a gold developer with gold deposits in Nevada.
Coeur Mining Inc has announced in a statement this week that it has entered into a definitive agreement to acquire Northern Empire Resources in a deal worth $90 million.
The acquisition will see Coeur Mining take control of Northern Empire’s flagship asset, the Sterling Gold project in Nevada. The project, which consists of four high-grade heap-leachable deposits with a total inferred gold resource of around 709,000 ounces of gold.
It is a fully permitted, past producing mine and Coeur will look to focus on the “quick restart” of the mine while aggressively exploring other highly prospective targets through the Crown Block mine licence.
“The acquisition of Northern Empire, with its high-grade Sterling Gold Project and large, prospective land package, comes at an opportune time for us to bolster our pipeline with high-quality projects. The transaction, which provides a unique opportunity for Coeur to leverage its operational expertise in Nevada, a leading mining jurisdiction, and add expected near-term, high margin production and cash flow with minimal upfront capital, together with significant exploration potential, satisfies all of our acquisition criteria and is accretive on all key financial and operational metrics,” said Mitchell Krebs, President & CEO of Coeur.
The Sterling Mine is a historically operating mine, with total gold production from the Sterling Mine between 1980 and 2000 nearing 194,996 ounces of gold from 853,984 tonnes of ore.