Coeur Mining buys Wharf Mine for $105 million from Goldcorp

Coeur Mining (NYSE: CDE) will spend $105 million in cash to buy 100% of Wharf Mine from Goldcorp (NYSE:GG).

The mine is located in Lead, South Dakota. Deal is expected to close by the end of the quarter.

Wharf is an open pit with 170 workers. It is expected to produce 85,000 to 90,000 oz in 2015.

"This divestiture of Wharf will unlock additional value for Goldcorp shareholders and demonstrates our commitment to focusing on the core assets within our portfolio," said Chuck Jeannes, President and Chief Executive Officer of Goldcorp in a news release.

"We thank the team at Wharf for their commitment and dedication and we wish them continued success as part of Coeur Mining. We will work closely with the team at site to ensure a smooth transition."

Coeur Mining posted its own news release listing key highlights of the deal:

  • Mine expected to produce 85,000 – 90,000 ounces of gold in 2015 at an all-in sustaining cost of $800 – $875 per gold ounce
  • Expected to increase Company’s 2015 EBITDA by over 30% and boost free cash flow
  • Anticipated to reduce Coeur’s consolidated unit costs
  • Provides quality, immediate growth from accretive transaction
  • Adds stable, established source of production and cash flow to Coeur’s existing portfolio
  • Enhances Company’s overall geopolitical risk profile
  • Leverages Coeur’s 25 years of open-pit, heap leach experience
  • Would represent a 24% increase to Coeur’s total gold reserves