Coeur Mining Clears Key Hurdle in $7 Billion New Gold Takeover, Aims for 2026 Completion

The Supreme Court of British Columbia has issued its final order approving the acquisition of Canadian miner New Gold Inc. by its U.S.-based rival Coeur Mining, Inc. The court-sanctioned plan of arrangement clears a major procedural hurdle for the blockbuster deal first announced in late 2025.

Under the approved plan, a subsidiary of Coeur will acquire all outstanding shares of New Gold. The transaction remains subject to approval under the Investment Canada Act and other customary closing conditions, with finalization anticipated in the first half of 2026.

The merger, structured as an all-stock transaction, values New Gold at an equity value of approximately $7 billion (C$9.54 billion). New Gold shareholders will receive 0.4959 shares of Coeur common stock for each share held, an exchange ratio based on Coeur's closing price of $17.16 on October 31, 2025. This implied a price of $8.51 per New Gold share, representing a 16% premium to its closing price on that date.

Upon completion, Coeur shareholders will own about 62% of the combined entity, with New Gold shareholders holding the remaining 38%. The new company is projected to boast a market capitalization nearing $20 billion, positioning it as a significant force in the North American precious metals sector.

Strategic Rationale and Production Outlook

The merger is primarily driven by the goal of creating a larger, more diversified producer with enhanced financial flexibility. The combined portfolio is forecast to produce roughly 1.25 million gold equivalent ounces in 2026, comprising 900,000 ounces of gold and 20 million ounces of silver. More than 80% of the revenue is expected to be generated from assets in the United States and Canada, with management targeting a strong position in sector free cash flow generation.

This move continues Coeur's aggressive consolidation strategy. In February 2025, the company completed its acquisition of SilverCrest Metals, another transaction that expanded its silver-focused asset base.

Market and Analyst Reactions

The court's decision was widely anticipated by the market, but it solidifies the deal's trajectory. We spoke to several industry observers for their take:

"This is a logical step in the ongoing consolidation of mid-tier gold producers," said Michael Thorne, a portfolio manager at Horizon Capital. "The combined operational scale and geographic focus in stable jurisdictions should appeal to a broader investor base. The key now is execution on the promised synergies."

Sarah Chen, a senior analyst at Precious Metals Insight, offered a more measured view: "The premium paid seems fair given the asset quality, but integrating two large corporate cultures and mine portfolios is never trivial. The 2026 production targets are ambitious and will be closely watched."

The approval drew a sharp rebuke from David Forsythe, a veteran geologist and outspoken industry commentator. "It's another case of financial engineering over fundamental geology," he argued. "These mega-mergers often promise 'synergies' which is just a polite word for job cuts and reduced exploration spending. It creates a bigger, more bureaucratic company, not necessarily a better one for long-term resource creation. Shareholders get a short-term pop, while local communities and the pipeline of new projects lose out."

The deal now awaits the final regulatory green light from Canadian investment authorities as the companies work towards a H1 2026 closing.

This report is based on original reporting by Mining Technology.

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