Item 8.01. Other Events.
On November 17, 2016, Coeur Mining, Inc. (“Coeur” or the “Company”) issued a press release (the “Release”) announcing that, as of November 16, 2016, the Company completed its previously announced “at the market” offering of $200.0 million of its common stock, par value $0.01 per share (the “Offering”). The Offering was conducted pursuant to an Equity Distribution Agreement, entered into on September 9, 2016, among the Company, BMO Capital Markets Corp., Raymond James & Associates, Inc. and RBC Capital Markets, LLC, as sales agents. The Company sold a total of
17,691,094
shares in the Offering, raising net proceeds (after sales commissions) of $197.0 million.
The Company intends to use the net proceeds from the Offering to reduce outstanding indebtedness, including the Company’s outstanding 7.875% Senior Notes due 2021 (the “Senior Notes”), and for general corporate purposes. In connection therewith, the Company announced in the Release that it was calling for redemption $190.0 million aggregate principal amount of its approximately $368.0 million outstanding Senior Notes on the terms described in the Release (the “Redemption”).
The Release is attached as Exhibit 99.1 to this Report and is incorporated herein by reference.
Cautionary Note Regarding Forward-Looking Statements
The information contained in this Current Report on Form 8-K and the exhibits attached hereto contain forward-looking statements within the meaning of securities legislation in the United States and Canada, including, among others, Coeur’s intended use of proceeds of the Offering and the Redemption.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements, including its use of proceeds, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and other factors include the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and a sustained lower price environment, the uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions, grade variability, any future labor disputes or work stoppages (involving Coeur and its subsidiaries or third parties), the uncertainties inherent in the estimation of gold and silver reserves and mineralized material, changes that could result from Coeur’s future acquisition of new mining properties or businesses, reliance on third parties to operate certain mines where Coeur owns silver production and reserves and the absence of control over mining operations in which Coeur or its subsidiaries hold royalty or streaming interests and risks related to these mining operations including results of mining and exploration activities, environmental, economic and political risks of the jurisdiction in which the mining operations are located, the loss of access to any third-party smelter to which Coeur markets silver and gold, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.