Coeur to Acquire Concessions Near the Palmarejo Mine from Fresnillo for $25M
Portfolio Pulse from Benzinga Newsdesk
Coeur Mining, Inc. (CDE) has agreed to purchase mining concessions near its Palmarejo mine from Fresnillo plc for a total of $25 million plus a future royalty. The deal involves an initial $10 million payment at closing, expected in 2024, with additional payments spread over the following two years, and a royalty on new resources discovered.
November 20, 2023 | 12:03 pm
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Coeur Mining's acquisition of concessions adjacent to Palmarejo could potentially increase its resource base and future production, with a $25M commitment and future royalties.
The acquisition is likely to be viewed positively as it indicates potential growth in Coeur's resource base and production capabilities. The structured payment and royalty agreement demonstrate a manageable financial commitment, which could be favorable for CDE's short-term liquidity and long-term prospects.
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