NYSE-listed Coeur Mining is expanding its footprint in Nevada, announcing on Tuesday that it would buy a property package adjacent to its Rochester operation from Alio Gold, which deemed the Lincoln Hill, Wilco and Gold Ridge projects as noncore.

In terms of a definitive agreement, Coeur Mining subsidiary Coeur Rochester would buy the assets for a total consideration of $19-million payable in shares.

The projects would provide operational synergies to the Rochester openpit, heap-leach mine, with the principal asset – Lincoln Hill – about 6.5 km west of the mine.

Lincoln Hill has a historical measured and indicated resource totalling 364 000 oz of gold and 10.2-million ounces of silver contained in 32.3-million tons of mineralised material, as well as an additional 255 000 oz of gold and 8.2-million ounces of silver in inferred resources.

The Wilco project is a gold/silver exploration project that covers about 3 600 ha with a historical measured and indicated resource of 1.3-million ounces of gold and 12-million ounces of silver contained in 125.8-million tons of mineralised material. The Wilco project also has an additional 541 000 oz of gold and 6.1-million ounces of silver in inferred resources.

In total, subject to closing, the projects will more than double Coeur’s land position at Rochester from roughly 6 600 ha to more than 16 300 ha.

“The acquisition of this property package from Alio represents a unique opportunity to bolster our Rochester operation in a manner that satisfies all our acquisition criteria,” said president and CEO Mitchell J. Krebs.

“The Lincoln Hill project provides higher-grade ounces located near Rochester’s infrastructure, which should allow us to generate high returns, higher margins and strong cash flow with little incremental capital. The Wilco and Gold Ridge projects provide additional exploration upside,” he added.

Closing of the acquisition is anticipated in the fourth quarter, subject to customary regulatory approvals and other conditions. Transfer of the Wilco project to Coeur is subject to a 30-day right of first refusal in favour of a third party.