Coeur Mining, Inc. (NYSE:CDE) announced on Monday that it will acquire New Gold Inc. (AMEX:NGD) in an all-stock transaction valued at approximately $7 billion.

The transaction creates a new North American senior precious metals producer with a market cap of around $20 billion. The boards have unanimously approved the agreement.

"This transaction provides clear and compelling benefits for New Gold and Coeur shareholders by bringing together two companies with similar cultures to create a stronger, more resilient, and larger-scale precious metals mining company," said Mitchell J. Krebs, Coeur's Chairman, President, and Chief Executive Officer.

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He called the merger "an extraordinary opportunity to create an unrivaled North American-only mining powerhouse at just the right time," praising the cash flow potential.

Under the terms of the agreement, New Gold shareholders will receive 0.4959 shares of Coeur common stock for each New Gold share held. The ...