Coeur Mining to Acquire Paramount Gold and Silver?

Coeur Mining Inc. (NYSE:CDE) is in talks to acquire Paramount Gold and Silver Corp. (NYSEMKT:PZG), according to sources contacted by Reuters. The sources say that since Paramount’s San Miguel project is next to Coeur’s Palmarejo, the agreement would allow the massive Palmarejo mine to continue operating for a further seven years.

As quoted in the publication:

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% stake in that new company, the people added.

Further terms of the deal, which have not yet been finalized by the two companies, could not be learned. The sources asked not to be identified because the negotiations are confidential.

Click here to read the full Reuters article.