Acquisitions

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

ACQUISITIONS

ACQUISITIONS

The Company completed the acquisition of Orko Silver Corporation (“Orko”) in April 2013. Upon completion of the acquisition, the Company holds the La Preciosa silver-gold project in the state of Durango, Mexico. The transaction was accounted for as a purchase of mineral interests since La Preciosa is a development stage project. The Company incurred $17.6 million of acquisition costs related to the acquisition of Orko which were capitalized.

Total consideration paid for the asset acquisition (in thousands):

Common shares issued (11,572,918 at $14.98)	$	173,363
Cash	99,059
Warrants (1,588,768 valued at $3.64 per warrant)	5,777
Transaction advisory fees and other acquisition costs	17,642
Total purchase price	295,841
Current liabilities	2,616
Deferred income taxes	114,339
Total liabilities assumed	116,955
Total consideration	$	412,796

Estimated fair value of the assets acquired (in thousands):

Cash	$	3,487
Other current assets	635
Mineral interests	408,352
Other assets	322
Total assets acquired	$	412,796

The Company completed the acquisition of Global Royalty Corporation (“GRC”) in December 2013. The transaction was accounted for as a business combination. Upon completion of the acquisition, the Company holds net smelter royalties on the El Gallo complex in Mexico and the Zaruma mine in Ecuador. The Company incurred $0.3 million of acquisition related costs in 2013 related to the acquisition of GRC which are included in General and administrative expenses in the Consolidated Statement of Comprehensive Income (Loss).

Total consideration paid for the acquisition (in thousands):

Common shares issued (2,130,351 at $10.42)	$	22,198
Cash	3,849
Total purchase price	26,047
Current liabilities	679
Deferred income taxes	7,926
Total liabilities assumed	8,605
Total consideration	$	34,652

Estimated fair value of the assets acquired (in thousands):

Cash	$	165
Receivables	276
Metal and other inventory	111
Mineral interests	34,100
Total assets acquired	$	34,652