Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
announced that it has closed the acquisition of privately-owned JDS
Silver Holdings, Ltd. and its wholly-owned subsidiary JDS Silver
Inc. (collectively, “JDS Silver”), which owns the high-grade
Silvertip Mine (“Silvertip”) in northern British Columbia, by way
of the previously announced arrangement (the “Arrangement”).
“We are excited about the impact Silvertip is expected to have
on our production, margins, and cash flow beginning next year. We
are also pleased to now have a presence in mining-friendly British
Columbia and look forward to building upon the strong government
and community partnerships already in place,” said Mitchell J.
Krebs, Coeur's President and Chief Executive Officer. “Over the
coming weeks and months, we plan to make meaningful investments at
Silvertip to position it as a significant and sustainable
cornerstone asset within our portfolio of operating mines.”
“Coeur Mining's decision to invest here demonstrates that
companies believe British Columbia is a good jurisdiction to invest
in mining," said British Columbia Minister of Energy, Mines and
Petroleum Resources Michelle Mungall. "Our government is committed
to strengthening mining in this province to ensure companies like
Coeur Mining continue to invest here, creating more good jobs for
British Columbians.”
Ruby Johnny, Chief of Dease River First Nation and member of the
Kaska Dena Council Board of Directors, added, “I would like to
congratulate Coeur Mining on the acquisition of JDS Silver. The
Silvertip Mine has provided many benefits to the Kaska which
include employment, contracting opportunities and an economic
agreement. We have established an excellent working relationship
with JDS Silver and our hope is to continue and grow this
relationship with Coeur Mining – the new owner of the Silvertip
Mine.”
Pursuant to the Arrangement, Coeur acquired all issued and
outstanding common shares of JDS Silver Holdings, Ltd. for
consideration of approximately US$147.5 million in cash and US$37.5
million in Coeur common stock, and assumed approximately US$15
million of existing debt. The cash consideration was funded with
US$100 million of borrowings under the Company’s revolving credit
facility as well as cash on hand. Upon closing of the Arrangement,
the Company issued approximately 4.19 million new Coeur shares to
former holders of JDS Silver, who now own approximately 2.3% of
Coeur’s issued and outstanding shares on an undiluted basis.
Additional consideration of up to US$50 million is payable
contingent upon the achievement of specific future permitting and
exploration milestones at Silvertip. Any such contingent
consideration will be paid in cash and in common stock. This
contingent consideration and other matters are described more fully
in the Arrangement Agreement dated September 10, 2017.
Coeur’s legal advisor was Goodmans LLP and its financial
advisors were Sprott Capital Partners and BMO Capital Markets.
Blake, Cassels & Gordon acted as legal advisor to JDS Silver
and Maxit Capital acted as JDS Silver’s financial advisor.
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious
metals producer with six mines in the Americas employing
approximately 2,300 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, the
Wharf gold mine in South Dakota, and the San Bartolomé silver mine
in Bolivia. In addition, the Company owns the La Preciosa project
in Mexico, a silver-gold exploration stage project. Coeur conducts
exploration activities in North and South 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 the anticipated results of the
Silvertip acquisition and any additional transaction consideration,
anticipated investments in Silvertip, and anticipated Silvertip
production, margins, and cash flow. 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 benefits of the Silvertip acquisition, anticipated
investments in Silvertip, and anticipated Silvertip production,
margins, cash flow, and other anticipated operating parameters are
not attained, 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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Coeur Mining, Inc.104 S. Michigan Avenue, Suite 900Chicago,
Illinois 60603Attention: Courtney Lynn, Vice President, Investor
Relations and TreasurerPhone: (312) 489-5800www.coeur.com
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