The deal allows Coeur to own JDS Silver’s high-grade silver-zinc-lead Silvertip mine in northern British Columbia, Canada.

As per terms of the deal, Coeur will pay an initial consideration of $200m, including $146.5m cash and $38.5m worth Coeur shares. It will also assume $15m existing debt.

Denham will also secure an additional $50m based on the achievement of certain performance-linked measures.

Silvertip is the new mine with a silver- equivalent indicated resource grade of 1,166g per tonne (g/t), including 352 g/t silver, 9.4% zinc and 6.7% lead.

The mine is also said to include a silver-equivalent inferred resource grade of 1,155 g/t, comprising of 343 g/t silver, 9.8% zinc, and 6.2% lead.

Subject to customary regulatory approvals and other closing conditions, the deal is expected to complete by the end of October this year.

JDS Silver CEO Jeff Stibbard said: "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.”

Coeur Mining president and CEO Mitchell Krebs said: “The acquisition of the Silvertip mine represents a unique oppo rtunity to significantly enhance our portfolio  of operations and it satisfies all our acquisition criteria – It provides expected near-term, low-cost, high  margin cash flow from an attractive jurisdiction and it is accr etive on all key operational and financial metrics.”