U.S.-based gold miner Coeur Mining has entered into an agreement to buy New Gold and its two Canadian gold mines in an all-stock transaction valued at approximately US$7 billion.  

Coeur, which operates a total of five mines in the United States and Mexico, plans to combine with New Gold, owner of the Rainy River gold mine in Ontario and the New Afton copper-gold mine in B.C. The combined company will have seven operations producing about 1.25 million gold-equivalent ounces next year, including 900,000 ounces of gold and 20 million ounces of silver. 

Under the terms of the agreement, New Gold shareholders would receive 0.4959 Coeur shares for each share of New Gold they hold. Upon completion of the transaction, Coeur shareholders would own roughly 62 per cent of the combined company, with New Gold shareholders holding the remaining 38 per cent. 

The combined company is expected to generate around US$3 billion in earnings before interest, taxes, depreciation and amortization, and about US$2 billion in free cash flow in 2026, with substantially lower overall costs and improved margins. 

“This transaction provides clear and compelling benefits for New Gold and Coeur shareholders by bringing together two companies with similar cultures to create a stronger, more resilient and larger scale precious metals mining company,” said Mitchell J. Krebs, chairman, president and CEO of Coeur Mining, in a Nov. 3 press release. “We believe this is an extraordinary opportunity to create an unrivalled North American-only, mining powerhouse at just the right time.” 

The companies stated that the agreement offers multiple benefits to Canada, such as boosting investment in exploration and expansion at the Rainy River and New Afton mines, while also supporting the ongoing evaluation of Coeur’s Silvertip silver-zinc-lead project in British Columbia. 

“Together, we will be a cash flow powerhouse, leaping above larger peers, with significant exploration upside and the potential to significantly extend mine life and grow net asset value per share,” said Patrick Godin, president, director and CEO of New Gold, in the press release. 

The deal is expected to help sustain significant employment in Canada, with the combined company projected to have over 1,700 employees across the country, along with an additional 450 contractors. The companies stated that the agreement would also maintain an offtake agreement for the processing of minerals in Canada. 

The transaction still requires approval from two-thirds of New Gold shareholders, along with regulatory and court approvals. Both companies’ boards have given unanimous approval, and the deal is expected to close in the first half of 2026, subject to customary conditions.