Coeur Completes Sale of Its 100%-Owned Bolivian Subsidiary
February 28 2018 - 4:37PM
Business Wire
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE:CDE) today
announced that it has closed the sale of all of the outstanding
capital stock of its wholly-owned Bolivian subsidiary, Empresa
Minera Manquiri, S.A. (“Manquiri”), which operates the San
Bartolomé Mine and processing facility near Potosí, Bolivia, to
Ag-Mining Investments, AB (formerly NewCo 4714 Sweden AB under
change of name to Argentum Investment AB) (“Ag-Mining”) by way of
the previously announced agreement (the “Agreement”).
Pursuant to the Agreement, Ag-Mining acquired Manquiri from
Coeur for consideration of: a 2.0% net smelter returns royalty
payable to Coeur on all metals processed through the San Bartolomé
Mine’s processing facility commencing on closing of the
transaction, which Coeur estimates is worth approximately $8
million, and promissory notes to Coeur having an aggregate
principal amount equal to $27.6 million, payable in equal monthly
installments beginning on October 1, 2018 with a maturity date of
September 1, 2019. In addition, all refunds of pre-closing value
added tax (“VAT”) that will be collected or received by Manquiri in
the future for any period ending on or before the closing date, net
of collection costs, will be paid to Coeur. The balance of
outstanding VAT at closing was $14 million.
As an all-stock transaction, except as otherwise specifically
provided in the Agreement, all of the current and future assets and
liabilities of Manquiri are retained by the entity under the new
ownership by Ag-Mining.
Coeur’s U.S. legal advisor was Gibson, Dunn & Crutcher LLP.
Much Shelist, P.C. acted as U.S. legal advisor to Ag-Mining.
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious
metals producer with five mines in North America employing
approximately 2,000 people. Coeur’s wholly-owned operations include
the Palmarejo silver-gold complex in Mexico, the Silvertip
silver-zinc-lead mine in British Columbia, the Rochester
silver-gold mine in Nevada, the Kensington gold mine in Alaska, and
the Wharf gold mine in South Dakota. In addition, the Company owns
the La Preciosa project in Mexico, a silver-gold exploration stage
project, and conducts exploration activities throughout North
America.
Cautionary Statements
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding anticipated consideration value.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Coeur's actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, the risk that anticipated consideration value for the
sale of Manquiri is not realized, 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, silver, zinc, and lead, 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, the uncertainties inherent in the estimation of
resources, changes that could result from Coeur's future
acquisition of new mining properties or businesses, the loss of any
third-party smelter to which Coeur markets commodities, 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, the political risks
and uncertainties associated with operations in Bolivia, 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 or 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180228006541/en/
Coeur Mining, Inc.Courtney Lynn, 312-489-5800Vice President,
Investor Relations and Treasurerwww.coeur.com
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