Coeur Mining buys royalty company
Coeur Mining (NYSE:CDE) says it will buy Global Royalty Corp., a Vancouver-based precious metals royalty company with interests in operating mines in Mexico and Ecuador.
Coeur, the largest US-based primary silver producer, outbid Blackhawk resources to acquire Global Royalty for $23.8 million – $300,000 in cash and the remainder in common shares.
The mining company has also created a subsidiary, Coeur Capital, to hold existing and future royalty and streaming interests.
Such agreements could help ease some of the financing issues that both large and small companies are currently experiencing.
Global Royalty's agreement with McEwen Mining on its El Gallo mine in Mexico gives a 3.5% net smelter royalty (NSR). It's agreement with Dynasty Metals & Mining gives 1.5% NSR on the miner's Zaruma gold project in Ecuador.
Coeur was up 1.21% on Monday, trading at $10.84 per share.