Coeur Mining, Inc. ( CDE ) shares are trading lower on Monday after the company announced it entered into a definitive agreement to acquire New Gold.

What To Know: Coeur and New Gold entered into a definitive agreement under which a wholly owned subsidiary of Coeur will acquire all issued and outstanding shares of New Gold through a court-approved plan of arrangement.

Under the agreement, New Gold shareholders will receive 0.4959 shares of Coeur common stock for each New Gold share, implying consideration of $8.51 per New Gold share based on Coeur's Oct. 31 closing price. The exchange ratio represents a 16% premium to New Gold's Oct. 31 closing price and values the transaction at about $7 billion, giving the combined company a pro forma market capitalization of roughly $20 billion.

The combination will create a 100% North American-based senior precious-metals producer with seven operations expected to generate about $3 billion of EBITDA and $2 billion of free cash flow in 2026 from production of approximately 20 million ounces of silver, 900,000 ounces of gold and 100 million pounds of copper.

Coeur said the transaction is accretive on all key per-share metrics and enhances its balance sheet with additional free cash flow to support future growth and shareholder returns. The deal is expected to close in the first half of 2026, subject to shareholder, court and regulatory approvals.

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CDE Price Action: Coeur shares are trading 12.41% lower at $15.04 at publication on Monday, according to data from Benzinga Pro.

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