Goodmans advising Coeur Mining; Davies and Blakes representing New Gold
Coeur Mining Inc. has struck a deal to acquire New Gold Inc. in an all-stock merger valued at around US$7 billion, a move that will reshape the landscape for North American precious metals producers. The transaction will create a new heavyweight in the sector, with a combined market capitalization of about US$20 billion.
Under the terms of the agreement, Coeur shareholders will own approximately 62 percent of the new company, while New Gold shareholders will hold the remaining 38 percent. The combined entity will operate mines across the U.S., Mexico, and Canada, and is projected to produce 900,000 ounces of gold and 20 million ounces of silver in 2026.
The merger positions the new company among the world’s top 10 precious metals producers and the top five silver producers, with silver accounting for 30 percent of its total reserves. The increased scale is expected to boost daily trading liquidity to over $380 million and could pave the way for inclusion in major U.S. stock indexes.
Leadership from both companies will play a role in the new organization. Several members of New Gold’s management team are set to join Coeur, and New Gold’s president and CEO, Patrick Godin, along with another director, will take seats on Coeur’s board.
“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,” Coeur chairman, president and CEO Mitchell J. Krebs said in a press release. “Both companies are in the early stages of generating significant cash flow after several years of heavy investment. We believe this is an extraordinary opportunity to create an unrivaled North American-only, mining powerhouse at just the right time.”
“The combination will provide New Gold shareholders with value from combined operational synergies including rapidly unlocking the potential of K-Zone at New Afton and the exploration potential of Rainy River while also diversifying our asset base by adding five high quality precious metals operations with significant upside,” said Patrick Godin. “I strongly believe in the potential of the pro forma company, which is why I am keen to join the Board, as we embark on the next stage in the evolution of both companies as a new, all North American senior precious metals company, one that is unique in our industry.”
Goodmans LLP and Gibson, Dunn & Crutcher LLP are serving as legal counsel to Coeur, with BMO Capital Markets and RBC Capital Markets advising on financial matters.
For New Gold, Davies Ward Phillips & Vineberg LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are acting as legal advisors, while Blake, Cassels & Graydon LLP is counsel to the special committee. National Bank Capital Markets and CIBC Capital Markets are providing financial advice to New Gold.
The deal is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.
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