Coeur Completes Acquisition of Wharf Gold Mine From Goldcorp
February 20 2015 - 4:45PM
Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE:CDE) announced
the completion of its acquisition of the Wharf gold mine from
Goldcorp, Inc. pursuant to the previously announced agreement.
Under the terms of the agreement, Coeur purchased all of the
issued and outstanding shares of the common stock of Wharf from a
subsidiary of Goldcorp in exchange for $105 million in cash,
subject to customary post-closing working capital adjustments.
Wharf is expected to produce 74,000 – 78,0001 gold ounces for
the remainder of 2015 at a cost applicable to sales per gold
equivalent ounce of $750 - $8251.
Coeur expects to complete a mineral reserve and resource
estimate and file a National Instrument 43-101 compliant technical
report for Wharf on www.sedar.com during the first half of
2015.
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a
significant gold 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 mine in
Mexico, the San Bartolomé silver mine in Bolivia, the Rochester
silver-gold mine in Nevada, the Kensington gold mine in Alaska, and
the Wharf gold mine in South Dakota. The Company also has a
non-operating interest in the Endeavor mine in Australia in
addition to royalties on the Cerro Bayo mine in Chile, the El Gallo
complex in Mexico, the Zaruma mine in Ecuador, and the Correnso
mine in New Zealand. In addition, the Company has two silver-gold
feasibility stage projects - the La Preciosa project in Mexico and
the Joaquin project in Argentina. The Company also conducts ongoing
exploration activities in Alaska, Argentina, Bolivia, Mexico, and
Nevada. The Company owns strategic investment positions in several
silver and gold development companies with projects in North and
South America.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding production, costs, completing
mineral reserve and resource estimates and filing a technical
report. 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 Coeur will not realize
any or all of the anticipated benefits from the Wharf transaction,
the risk that development and operating synergy goals for the Wharf
transaction will not be met and that disruptions from the
transaction will harm relationships with customers, employees,
suppliers and regulators, the risk that unexpected costs will be
incurred, the outcome of litigation (including with respect to the
Wharf transaction), 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, the uncertainties inherent
in the estimation of gold and silver ore reserves, 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 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.
Notes:
1. Guidance as of February 20, 2015. Wharf is expected to
produce 85,000 - 90,000 ounces of gold for the full-year 2015 at
all-in sustaining costs of $800 - $875 per gold ounce in 2015 based
on guidance provided by Goldcorp on January 12, 2015. Gold
equivalence assumes a silver to gold ratio of 60:1.
CONTACT: For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
www.coeur.com
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