Coeur Mining Inc, the biggest U.S. producer of silver, is in advanced negotiations to acquire Paramount Gold and Silver Corp, according to people familiar with the matter, as it seeks to expand its mining footprint in Mexico. The talks are the latest sign of low metal prices driving mining companies into consolidation, as they strive to lower their cost base, expand their deposits and become more profitable.Paramount's San Miguel mining project neighbors Coeur's Palmarejo silver-gold mine in Northern Mexico. The deal would enable Palmarejo to continue as one of the largest and highest grade silver and gold mines in the world for at least another seven years, according to the people.Under the terms being negotiated, Paramount shareholders would be paid in Coeur shares, the people said. Coeur and Paramount have a market capitalization of $425 million and $107 million respectively.As part of the deal, Paramount plans to spin off its non-Mexican assets into a standalone publicly listed company, the people said. Coeur would have a 4.9 percent stake in that new company, the people added.
Coeur Mining, Inc., formerly Coeur d?Alene Mines Corporation, is a silver producer with gold production and has assets located in the United States, Mexico, Bolivia, Argentina and Australia. Shares of CDE fell by 11.42% or $-0.53/share to $4.11. In the past year, the shares have traded as low as $3.37 and as high as $12.06. On average, 2740840 shares of CDE exchange hands on a given day and today's volume is recorded at 1736854.
Paramount Gold and Silver Corp. (Paramount) is an exploration stage mining company with projects in northern Nevada and Chihuahua, Mexico. Shares of PZG fell by 7.21% or $-0.0513/share to $0.66. In the past year, the shares have traded as low as $0.55 and as high as $1.48. On average, 491892 shares of PZG exchange hands on a given day and today's volume is recorded at 333829.
Shares of PZG fell by 8.43% or $-0.07/share to $0.76. In the past year, the shares have traded as low as $0.65 and as high as $1.62. On average, 17573 shares of PZG.TO exchange hands on a given day and today's volume is recorded at 189020.
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