Coeur Mining’s Acquisition of New Gold Nears Critical Shareholder Vote

The proposed multi-billion dollar acquisition of New Gold by Coeur Mining is advancing through key regulatory and procedural stages, though the market's immediate reaction has been muted. As the deal approaches a decisive shareholder vote, investors appear to be weighing the inherent integration risks against the long-term strategic potential of creating a leading North American precious metals producer.

The path forward is now clearly marked on the calendar. Both companies have scheduled special shareholder meetings for January 27, 2026, which will serve as the definitive milestone for the transaction.

• Shareholders of New Gold will vote on the proposed arrangement plan.
• Coeur Mining's investors will decide on the issuance of new shares required for the deal and a corresponding amendment to the company's charter to increase its authorized share capital.

The financial terms are fixed: for each New Gold share held, investors will receive 0.4959 shares of Coeur common stock. Upon completion, former New Gold shareholders would own approximately 38% of the combined entity, with existing Coeur shareholders retaining a roughly 62% stake. This structure confirms Coeur's majority control while accepting meaningful dilution to achieve a significantly expanded resource base and operational scale.

Regulatory Hurdle Cleared

A major procedural step was confirmed on December 22, when New Gold announced a critical regulatory development. The Canadian Competition Bureau issued an Advance Ruling Certificate under the Competition Act on December 5. This decision satisfies a key condition of the merger agreement between the two firms, effectively removing a substantial regulatory obstacle.

The all-stock transaction is designed to forge a premier precious metals producer. In parallel, New Gold has filed its management information circular and obtained an interim order from the Supreme Court of British Columbia, which authorizes the calling of the special meeting.

Should investors sell immediately? Or is it worth buying Coeur Mining?

Despite this progress, Coeur's share price has recently faced pressure. Following a rally of approximately 25% over the prior 30 days and a surge of over 160% since the start of the year, the recent weakness suggests a consolidation phase within a highly volatile equity.

Strategic Rationale Behind the Merger

This is a transformative acquisition, not a minor adjustment. With an implied transaction value of around $7 billion, Coeur aims to solidify its position as a major force in North American precious metals mining.

The combined portfolio is expected to:

• Broaden and diversify the production base.
• Generate operational, procurement, and capital allocation synergies through greater scale.
• Enhance capital market perception via increased size and liquidity.

Structured as a pure share-exchange, the deal limits balance sheet strain from additional debt. However, it does dilute current Coeur equity holders. The recent stock performance reflects this tension between the promise of a more powerful combined company and the short-term risks associated with integration costs, dilution, and potential execution challenges.

The Road to Completion

All focus now shifts toward the January 27, 2026, vote. The outcome hinges on shareholder approval from both companies and ongoing communication regarding the financial targets for the merged group. A positive vote from both meetings would position Coeur Mining to operate from 2026 onward with a vastly larger production profile and new synergy levers. Should either shareholder group reject the proposal, Coeur would remain in its current form, albeit after months of intensive merger preparation.