Coeur to Sell Joaquin Project to Pan American Silver
January 17 2017 - 8:00AM
Business Wire
All amounts are expressed in US$ unless otherwise indicated.
This news release contains forward-looking information about
expected future events. Readers should refer to the "Cautionary
Statement" at the end of this news release.
Coeur Mining, Inc. (“Coeur”) (NYSE: CDE) and Pan American Silver
Corp. (“Pan American”) (NASDAQ: PAAS) (TSX: PAA) today announced a
definitive agreement under which Pan American will acquire 100% of
Coeur’s Joaquin project, located in the Santa Cruz province of
southern Argentina.
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Under the terms of the agreement, consideration payable to Coeur
will include $15 million in cash and $10 million in Pan American
stock. Coeur will also retain a 2.0% net smelter returns royalty
(“NSR”) on the Joaquin project. The transaction is expected to
close in the first quarter of 2017, subject to customary closing
conditions.
“This transaction reflects our strategy to monetize non-core
assets and redeploy the proceeds into higher-quality,
higher-return, nearer-term growth opportunities. By retaining a
2.0% NSR, Coeur will also retain upside exposure to Joaquin.
Together with the sale of the past-producing Martha Mine last year,
this transaction will allow us to realize holding cost savings and
represents a reduction in the Company’s overall geographic
footprint,” said Mitchell J. Krebs, Coeur’s President and Chief
Executive Officer.
“The Joaquin project is well-suited for our Manantial Espejo
operation in Santa Cruz. The project is located approximately 145
kilometres from our mine, well within trucking distance, and our
plant will have available capacity when open-pit mining is
completed, which is expected to be in early 2017. We have begun
work on technical studies for the Joaquin project to determine how
much of the high-grade portion of Joaquin’s mineralized material
can be economically treated at Manantial Espejo. Adding high-grade
satellite deposits that are prevalent in the region around our
Manantial Espejo mine is an effective way to extract additional
value from our investment in the Province of Santa Cruz,” said
Michael Steinmann, President and CEO of Pan American Silver.
About Coeur
Coeur Mining is a well-diversified, growing precious metals
producer with five precious metals mines in the Americas employing
approximately 2,000 people. Coeur produces from its wholly owned
operations: the Palmarejo silver-gold complex in Mexico, the
Rochester silver-gold mine in Nevada, the Kensington gold mine in
Alaska, the Wharf gold mine in South Dakota, and the San Bartolomé
silver mine in Bolivia. The Company also has a non-operating
interest in the Endeavor mine in Australia. In addition, the
Company has two silver-gold exploration stage projects - the La
Preciosa project in Mexico and the Joaquin project in Argentina.
Coeur conducts ongoing exploration activities in Alaska, Nevada,
South Dakota and Mexico.
About Pan American Silver
Pan American Silver Corp. is one of the largest primary silver
producers in the world. Pan American owns and operates seven mines
located in Mexico, Peru, Argentina and Bolivia. Pan American also
owns several development projects in the USA, Mexico, Peru and
Argentina. The Company's mission is to be the world’s pre-eminent
silver producer, with a reputation for excellence in discovery,
engineering, innovation and sustainable development. The Company is
headquartered in Vancouver, B.C. and its shares trade on NASDAQ
(PAAS) and the Toronto Stock Exchange (PAA).
Cautionary Statement
This news release contains forward-looking statements or
information within the meaning of securities legislation in the
United States and Canada, including expectations for the completion
of the transaction between Coeur and Pan American, Coeur’s
investments in near-term, high-quality organic growth
opportunities, completion of the Manantial Espejo open pit,
completion of technical studies and treatment of mineralized
material from Joaquin at Manantial Espejo. These forward-looking
statements and information reflect Coeur and Pan American's current
views with respect to future events and are necessarily based upon
a number of assumptions that, while considered reasonable, are
inherently subject to significant operational, business, economic
and regulatory uncertainties and contingencies. These assumptions
include: customary closing conditions being satisfied in a timely
manner. The foregoing list of assumptions is not exhaustive. Such
forward-looking statements and information also involve known and
unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements or
information. Such factors include, among others, the 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. Actual results, developments and timetables
could vary significantly from the estimates presented. Readers are
cautioned not to put undue reliance on forward-looking statements
or information. Coeur and Pan American disclaim any intent or
obligation to update publicly such forward-looking statements or
information, whether a result of new information, future events or
otherwise, except to the extent required by applicable law.
Additionally, neither Coeur nor Pan American undertakes any
obligation to comment on analyses, expectations or statements made
by third parties in respect of the content of this news
release.
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Coeur Mining, Inc.Courtney R. B. Lynn, Vice President,
Investor Relations and Treasurer(312) 489-5837www.coeur.comorPan
American Silver Corp.Siren Fisekci, Vice President, Investor
Relations and Corporate Communications(604)
806-3191www.panamericansilver.com
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