Coeur Mining to Acquire New Gold in $7 Billion All-Stock Deal
The acquisition creates a leading North American precious metals producer, offering New Gold shareholders a 16% premium and signaling further consolidation in the mining sector.
Coeur Mining Inc. (NYSE: CDE) has agreed to acquire New Gold Inc. (NYSE: NGD) in an all-stock transaction valued at approximately $7 billion, a move that will create one of the largest precious metals producers focused exclusively on North American assets.
The deal, announced early Monday, implies a consideration of $8.51 per New Gold share, representing a 16% premium to the company's closing price on October 31, 2025. The announcement sent New Gold's shares surging in pre-market trading as investors reacted to the significant premium.
This combination marks a significant step in the ongoing consolidation within the global mining industry, where scale and jurisdictional safety have become paramount for attracting investment. By joining forces, Coeur and New Gold will control a robust portfolio of mines and development projects located entirely in the United States, Canada, and Mexico, minimizing the geopolitical risks that have troubled miners in other parts of the world.
Strategic Rationale and Market Impact
The acquisition is structured as an all-stock deal, meaning Coeur Mining will use its own shares as currency to purchase New Gold. This method allows both sets of shareholders to participate in the future success and anticipated synergies of the combined entity. Based on their respective market capitalizations prior to the announcement—Coeur at over $11 billion and New Gold at nearly $6 billion—the new company will be a formidable player in the senior metals producer category.
The strategic logic behind the merger, as reported by Bloomberg, centers on creating a lower-cost, longer-life, and geographically focused mining powerhouse. The combined entity is expected to benefit from operational synergies, reduced administrative costs, and an enhanced ability to fund large-scale development projects from its own cash flow.
For New Gold shareholders, the transaction crystallizes immediate value through the 16% premium. The implied $8.51 valuation per share is notably higher than the stock's 50-day moving average of $6.66, reflecting Coeur's confidence in the quality and potential of New Gold's assets, which include the Rainy River and New Afton mines.
A New North American Mining Major
Coeur Mining, a Chicago-based company with a history stretching back to 1928, has focused on growing its gold and silver production across North America. Its asset base includes the Rochester mine in Nevada and the Kensington mine in Alaska. The addition of New Gold's Canadian operations significantly bolsters its production profile and resource base, creating a more balanced and diversified portfolio.
The merger is poised to create a company with a compelling investment thesis: high-quality assets in stable jurisdictions, a strong balance sheet, and a clear path to production growth. This North American focus is increasingly attractive to institutional investors who have become wary of the operational and political uncertainties in other major mining regions.
Analysts expect the deal to be well-received, given the clear strategic fit and the conservative all-stock financing structure. The focus will now shift to the integration process and the delivery of the promised synergies. The transaction is subject to customary closing conditions, including shareholder and regulatory approvals, and is expected to be completed in the first half of 2026.