U.S. natural resources private equity firm Denham Capital has agreed to sell its interest in JDS Silver Holdings Ltd, including the company’s high-grade silver-lead-zinc Silvertip mine, to Coeur Mining Inc (NYSE: CDE). The deal is valued at as much as US$250 million and is expected to wrap up in October. Denham a year ago invested US$65 million in JDS Silver to help the Vancouver-based company construct and bring into production the Silvertip mine, which is located in northern British Columbia. The deal was Denham’s first in the Canadian mining industry. Coeur Mining is a Chicago-based precious metals producer.
Denham Capital Announces Agreement to Sell JDS Silver’s Silvertip Mine to Coeur Mining
Firm’s Canadian Mining Partnership Allowed Company to Build Out and Bring into Production British Columbian Asset
September 11, 2017
HOUSTON–(BUSINESS WIRE)–Denham Capital, a leading resources and energy-focused global private equity firm, today announced the signing of a definitive agreement by JDS Silver Holdings, Ltd. and its wholly-owned subsidiary, JDS Silver Inc. with Coeur Mining, Inc. to sell 100 percent of the shares of JDS Silver Holdings, which include the high-grade silver-zinc-lead Silvertip mine located in northern British Columbia, Canada, for consideration of up to US $250 million.
Jeff Stibbard, JDS Silver CEO, stated, “Denham’s flexible approach, which included the use of both debt and equity to fund development capital, and strategic guidance combined with our development and operational capabilities enabled us to expedite the construction and development of the Silvertip Mine into production. We are very proud of our partnership and what we accomplished together.”
“We are delighted at the outcome of this investment in the Canadian mining sector and have greatly enjoyed the experience of working with Jeff and his team,” added Caroline Donally, Denham Capital Director. “Our partnership with JDS Silver once again illustrates our management team driven investment approach, and we look forward to replicating this successful approach again in Canada.”
About the Silvertip Mine
Located within the Silvertip Creek valley, Silvertip is a high-grade silver-lead-zinc mine. JDS Silver began construction in December 2015 and began production in October 2016.
Under the Arrangement Agreement, the US $200 million initial consideration received by JDS and its affiliates will, after repayment of JDS Silver debt, consist of 75 percent cash, 25 percent Coeur shares and the assumption of US $15 million in existing debt. Coeur will also pay additional cash consideration of up to $50 million based on the achievement of certain performance-linked measures and Denham will retain an existing royalty on the property.
The transaction, which is expected to close before the end of October, is subject to customary regulatory approvals and other closing conditions.
Maxit Capital served as exclusive financial adviser to JDS Sliver.
About JDS Silver
JDS Silver, led by accomplished Canadian mining entrepreneur Jeff Stibbard, targets base and precious metals projects that may be “fast-tracked to cash flow” in northern and western Canada. For more information about JDS Silver, visit www.jdssilver.com.
About Denham Capital
Denham Capital is a leading natural resources-focused global private equity firm with more than 9 billion of invested and committed capital across nine fund vehicles and offices in Houston, London, Boston and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving mining, oil and gas and power generation, across the globe and all stages of the corporate lifecycle. Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives. Denham Capital does not provide investment advice to the public. For more information about Denham Capital, visit www.denhamcapital.com.
Mike Gehrig, +1 713-627-2223
Photo courtesy of JDS Silver Inc