Coeur Mining has entered into a definitive agreement to acquire privately-owned JDS Silver Holdings, Ltd. and its wholly-owned subsidiary, JDS Silver Inc., which owns the high-grade silver-zinc-lead Silvertip mine located in northern British Columbia, Canada, adding a sixth producing mine to Coeur’s North American-focused platform. Under the Arrangement Agreement, the Company will pay initial consideration of US$200 million.
The Silvertip mine is one of the industry’s newest and highest-grade silver-zinc-lead mines. Located just below the Yukon border, the operation sits within a highly prospective 93,000-acre (37,650 hectares) land package. Silvertip commenced production during the fourth quarter of 2016.
Upon expected completion of the transaction in late October, Coeur intends to invest US$25 – US$35 million in surface infrastructure, accelerated underground development and drilling and mill optimization over a six-month period and recommence commercial production by the end of the first quarter of 2018. Once an anticipated daily average mining rate of 1,000 tonnes per day is achieved, Coeur expects Silvertip to produce an average of approximately ten million silver equivalent1 ounces annually consisting of approximately three million ounces of silver, 45-50 million pounds of zinc, and 40-45 million pounds of lead over an estimated 7.5-year initial mine life.