Chicago-based Coeur Mining is acquiring Canada’s New Gold in an all-stock deal valued at about $7 billion, reports mining.com.

The merger is said to create a new North American mining heavyweight during a time when there are record gold prices and increased investor interest in precious metals.

Coeur, which has mines in the U.S. and Mexico, will merge with New Gold’s two Canadian gold-producing sites to form a company valued at roughly $20 billion.

Together, it’s estimated their yearly output will be 900,000 ounces of gold and 20 million ounces of silver in 2026.

The company says the merger improves Coeur’s balance sheet and cash flow with New Gold’s assets expected to lower Coeur’s production costs and boost margins.

“With the addition of New Gold’s two Canadian operations to our fiv

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