NYSE-listed Coeur Mining on Monday announced an offer for TSX- and NYSE-listed New Gold, valuing the precious metals producer at about $7-billion.

Under the terms of the all-share agreement, New Gold shareholders will receive 0.4959 Coeur shares for each New Gold share held, representing implied consideration of $8.51 a share based on Coeur’s October 31 closing price. The offer reflects a 16% premium to New Gold’s closing price on the same day.

The combined company will have a pro forma market capitalisation of about $20-billion, with Coeur and New Gold shareholders owning about 62% and 38%, respectively.

The merger will bring together seven producing assets across the US, Canada and Mexico, generating around 1.25-million gold-equivalent ounces in 2026, including 900 000 oz of gold and 20-million ounces of silver. About 80% of revenue will come from operations in the US and Canada.

Coeur CEO Mitchell Krebs said the transaction positioned the company as a “North American-only mining powerhouse” with increased scale and cash flow.

The combined company is expected to generate about $3-billion of earnings before interest, taxes, depreciation and amortisation and $2-billion of free cash flow in 2026, up from Coeur’s estimated 2025 figures of $1-billion and $550-million, respectively.

New Gold CEO Patrick Godin said the deal marked “a monumental day” for New Gold and would give its shareholders exposure to a larger, diversified portfolio with “immense exploration potential". Godin and another New Gold director would join Coeur’s board following completion.

Coeur said it would also maintain New Gold’s Toronto office and its Vancouver base, sustaining employment and community partnerships in British Columbia and Ontario.

The deal, structured as a court-approved plan of arrangement under British Columbia law, requires approval by two-thirds of New Gold shareholders and a majority of minority shareholders, as well as regulatory and court approvals. Coeur shareholders will also vote on the share issuance and an amendment to increase the number of authorised shares.

Both companies’ boards have unanimously approved the transaction, which is expected to close in the first half of 2026, subject to customary conditions.

The transaction follows a year after the Coeur announced the $1.7-billion takeover of SilverCrest Metals.