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Coeur Mining announces investment in Victoria Gold Corp.

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Global Mining Review,

Coeur Mining, Inc. has entered into an agreement to acquire 11.06 million (approximately 17.8%) of the outstanding undiluted common shares of Victoria Gold Corp. from Orion Co-VI Ltd at a price of CAN$13.20 per share, which reflects a 5% discount to the trailing 30-day volume weighted price for the period ending 7 May 2021.

In connection with the transaction, Orion will receive 12.78 million shares of Coeur common stock (approximately 4.9% of issued and outstanding shares), based on the trailing 30-day volume weighted price of CAN$9.17 per share, for the period ended 7 May 2021, representing aggregate consideration of approximately CAN$117.2 million. Orion’s sales of Coeur shares will be subject to certain restrictions. The transaction is expected to close on or around 11 May 2021, subject to closing conditions.

“We have long admired the quality of Victoria’s Eagle asset and its recent success in ramping up operations. This compelling opportunity to acquire 17.8% ownership interest in Victoria from Orion is consistent with our stated strategy and capital allocation framework, and complements our existing portfolio of precious metals assets in high-quality jurisdictions in North America,” commented Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. “We are excited to become a shareholder of Victoria, and believe this transaction represents an attractive investment for our stockholders.”

Concurrently, the company and Orion also entered into an agreement pursuant to which Orion has agreed, subject to certain terms and conditions, among other things, to certain transfer restrictions on its remaining shares in Victoria and to support, vote in favour of, or deposit all common shares it owns in favour of an offer, proposal or transaction that is supported by the board of directors of Victoria that would result in the acquisition by Coeur of more than 50% of the common shares of Victoria, or all or substantially all of the assets and properties of Victoria on a consolidated basis.

An early warning report will be filed by Coeur in accordance with applicable securities laws. As indicated in such report, in the future, Coeur may acquire or dispose of common shares or other securities of Victoria, either on the open market or in private transactions, depending on a number of factors. Coeur may engage in discussions with Victoria, and, if and when appropriate, its representatives, regarding the company’s investment and possible strategic alternatives. While no present plans exist in this regard, Coeur may consider or develop plans and/or make proposals with respect to potential strategic transactions involving Victoria’s shares, business, or assets.

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