Coeur Mining Clears Major Legal Hurdle for New Gold Acquisition

Coeur Mining US1921085049

Shares of Coeur Mining experienced significant volatility last week, caught between a major corporate development and sector-wide pressures. The company successfully navigated a key legal approval for its planned acquisition of New Gold, even as its stock price was dragged down by a broad sell-off in precious metals.

Despite the positive merger news, Coeur Mining's equity fell sharply on Friday, closing down over 16 percent. This decline was part of a wider downturn affecting precious metal assets. The sell-off was triggered on January 30th by President Trump's nomination of Kevin Warsh as the next Federal Reserve Chair, which placed downward pressure on gold and silver prices, subsequently pulling mining stocks lower. For the week, the share price decline accumulated to more than 21 percent. Nevertheless, the stock remains in positive territory for the year-to-date period.

Court Approval Moves Merger Forward

A decisive step was taken on Friday when the Supreme Court of British Columbia approved the merger plan. This judicial clearance brings the combination substantially closer to completion, following an earlier vote where nearly 99 percent of New Gold’s shareholders cast ballots in favor of the transaction.

Under the terms of the deal, shareholders of New Gold will receive 0.4959 Coeur Mining shares for each share they currently hold. Upon finalization, existing Coeur Mining investors are projected to own approximately 62 percent of the merged entity, with New Gold shareholders holding the remaining 38 percent.

Building a Precious Metals Leader Pending Final Approval

The combined company is positioned to become a prominent player in the precious metals sector. Management forecasts that the merged entity will achieve an EBITDA of $3 billion by 2026. One significant regulatory condition remains, however: the transaction is still subject to approval under Canada's Investment Canada Act. The deal is anticipated to close in the first half of 2026.

Institutional Confidence and Upcoming Catalyst

Amid the recent price swings, institutional interest appears steadfast. The Vanguard Group maintains a reported stake of 9.06 percent, representing over 58 million shares, signaling continued confidence from a major investor.

Market participants are now looking ahead to Coeur Mining's next scheduled event: the release of its fourth-quarter 2025 financial results, expected around mid-February, likely on the 17th or 18th. This report will be scrutinized for management's commentary on integrating New Gold and navigating the challenging market environment.

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