Coeur Mining (CDE) Acquires New Gold Through a Subsidiary

Coeur Mining Inc. (NYSE:CDE) is one of the 15 large cap stocks under $30 with huge upside potential.

On March 20, New Gold Inc. revealed that a wholly owned subsidiary of Coeur Mining Inc. (NYSE:CDE) has completed the acquisition of New Gold’s entire common shares outstanding. This followed a plan of arrangement that had previously been put in place between the two entities.

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For every New Gold common share owned, New Gold stockholders received 0.4959 shares of Coeur common stock under the terms of the deal. New Gold common shares will be delisted from the Toronto Stock Exchange and NYSE American shortly after the transaction is finalised. Additionally, according to relevant Canadian securities legislation, Coeur plans to force New Gold to apply to stop being a reporting issuer. Both the TSX and the New York Stock Exchange list Coeur common stock.

Back on February 20, Roth Capital analyst Joe Reagor maintained a Buy rating on Coeur Mining Inc. (NYSE:CDE). The analyst also increased his target price from $23 to $29. Reagor noted that the company reported mixed fourth-quarter results relative to its estimates, though it still viewed the quarter as overall strong. He also cited higher gold and silver prices since the last update as a positive driver.

Coeur Mining Inc. (NYSE:CDE) engages in the exploration of metals, including gold, silver, and zinc. The company has off-take arrangements with smelters, refiners, and other third-party customers, to whom it sells its products. It has primary operations based in the U.S., Canada, and Mexico.

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