ISS backs New Gold–Coeur deal ahead of shareholder vote
Independent proxy advisory firm Institutional Shareholder Services (ISS) has recommended that New Gold shareholders vote for the company’s proposed plan of arrangement with Coeur Mining, providing a key endorsement ahead of a special shareholder meeting later this month.
Toronto- and New York-listed New Gold said on Tuesday that ISS had reviewed the proposed transaction, under which a wholly owned subsidiary of Coeur Mining would acquire all the issued and outstanding common shares of New Gold.
"The arrangement appears strategically sound, as the combined company is expected to benefit from operational synergies, a stronger balance sheet, and improved liquidity. Furthermore, the implied per-share consideration has increased since the unaffected date, and there is no evidence to suggest the valuation lacks credibility," said ISS in its assessment.
Under the terms of the deal, New Gold shareholders would receive 0.4959 Coeur common shares for each New Gold share held. Following completion of the transaction, existing Coeur and New Gold shareholders are expected to own about 62% and 38% of the combined company, 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 previously said the transaction positioned the company as a “North American-only mining powerhouse” with increased scale and cash flow.
A special meeting of New Gold shareholders is scheduled for January 27 at 11:00 a.m. Eastern Time.
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