#Canada #Vancouver #SilverCrest Metals #Coeur Mining #Las Chispas

SilverCrest's Strategic Move Toward Coeur Mining Arrangement

In a decisive step, SilverCrest Metals Inc. has made public its documentation for the special meeting of its security holders, set to approve a comprehensive arrangement with Coeur Mining. This strategic meeting is crucial for the shareholders and option holders of SilverCrest and is aimed at garnering their approval for a proposed plan which includes an exchange agreement.

The special meeting will be held on February 6, 2025, at 10:00 a.m. Pacific time in Vancouver, British Columbia. Alongside that, security holders can join the meeting via a live webcast. Notably, only those whose names appeared on the record as of December 19, 2024, will be allowed to vote on this significant resolution, which could greatly reshape SilverCrest's future.

Overview of the Arrangement

The Arrangement, struck between SilverCrest and Coeur Mining on October 3, 2024, proposes that each SilverCrest shareholder will receive 1.6022 shares of Coeur’s common stock for every SilverCrest share they own. At the close of trading on the day the agreement was made, this share exchange ratio signified an approximate value of $11.34 USD per SilverCrest share, equating to an impressive 18% premium as compared to other historical trading data. Moreover, this representational value is poised to bring around $1.7 billion in total equity based on existing shares.

SilverCrest security holders stand to gain immediate and substantial benefits from this arrangement, including:

• - A significant premium: The proposed exchange ratio signifies a premium not just compared to previous recent prices, but also reflects the strategic growth opportunities that the combined company will likely pursue.
• - Diversified operations: If approved, shareholders will become part of a larger entity characterized by high-quality operational diversity, specifically including established mining operations in both the U.S. and Mexico, along with additional advantageous properties.
• - Enhanced production capacity: Combining the high-grade assets of SilverCrest with Coeur’s operational capacity is expected to enhance silver production, particularly by complementing the existing operations at SilverCrest’s Las Chispas mine.

Financial Implications of the Arrangement

The merger is projected to generate approximately $700 million in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and $350 million in free cash flow for the newly combined entity in 2025. This is anticipated to strengthen Coeur’s financial standing significantly by streamlining costs and optimizing cash flow generated from a wider portfolio of producing mines.

Prior to moving forward, the Board of Directors of SilverCrest has strongly recommended that security holders cast their votes in favor of the arrangement. This follows a careful review of the arrangement agreement and consultation with financial advisors.

SilverCrest Metals prides itself on its commitment to shareholder value and operational excellence, which has led to the decision to pursue this agreement with Coeur Mining. As such, the company encourages every security holder to vote promptly and ensures they are equipped with all the necessary materials to make informed decisions regarding this pivotal moment in SilverCrest’s trajectory.

Call to Action

As the deadline for proxy voting approaches, security holders are urged to engage actively and ensure their voices are heard at this determining meeting. The deadline to submit votes is February 4, 2025, at 10:00 a.m. Pacific time. For further details on how to vote, shareholders can access the company's official website.

This potential partnership could position SilverCrest and Coeur Mining for a successful future, combining strengths and creating further value in the precious metals sector, a space that remains pivotal amidst shifting market dynamics.