Coeur d’Alene Mines Corporation (NYSE:CDE)(TSX:CDM) (“Coeur” or
the “Company”) announced today that Mirasol Resources Ltd.
(“Mirasol”) has agreed to sell to Coeur its wholly-owned Argentine
subsidiary, Mirasol Argentina SRL, which holds the Joaquin
silver-gold project in the Santa Cruz province of Argentina. Coeur
currently has a 51% interest in the project. The Company will pay
Mirasol total consideration of US$60 million, being approximately
US$30 million in cash and 1,310,043 common shares.
Mitchell J. Krebs, Coeur's President and Chief Executive
Officer, said, “We are pleased to consolidate our ownership in the
Joaquin project. We believe Joaquin has substantial exploration
upside and the potential to become a significant silver producer
for the Company. We intend to continue the drilling program at
Joaquin in 2013 and accelerate work on a feasibility study. The
subsequent development decision will be based on the economics of
the project and our assessment of the political and business
environment in Argentina at that time.”
Upon completion of the acquisition, Coeur will own 100% of the
Joaquin project, which has a recently updated Canadian National
Instrument (NI) 43-101 mineral estimate of 38.4 million silver
ounces in measured and indicated resources, and 31.3 million silver
ounces in inferred resources. In addition, Joaquin contains 39,600
gold ounces in measured and indicated resources and 19,400 gold
ounces in inferred resources.
Mineral Resources for the Joaquin
Project at September 2012
Short Tons
Grade
Contained
(000)
(Oz/Ton)
Ounces
Silver Gold
Silver (000)
Gold
Measured Resources
Oxides
1,543 2.64 0.003 4,200 4,900 Sulfides
220 5.43
0.003 1,300
800
Total Measured
1,763
3.01 0.003
5,500
5,700
Indicated Resources
Oxides 10,582 2.62 0.003 27,600 30,300 Sulfides
1,102 4.75
0.003 5,300
3,700
Total Indicated
11,684
2.82 0.003
33,000
34,000
Measured and Indicated
Resources
Oxides 12,125 2.62 0.003 31,800 35,100 Sulfides
1,323 4.87
0.003 6,600
4,500
Total Measured and Indicated
13,448
2.85 0.003
38,400
39,600
Inferred Resources
Oxides 6,614 2.92 0.002 19,300 11,900 Sulfides
2,094 5.80
0.004 12,000
7,500
Total Inferred
8,708
3.61 0.002
31,300
19,400
- From September 21, 2012 Technical
Report.
- Metal prices used were $30 per silver
ounce and $1,500 per gold ounce.
- Oxide mineral resources estimated using
a cutoff grade of 30 grams per tonne (0.88 ounce per ton) silver
and sulfide mineral resources with a cutoff grade of 34 grams per
tonne (0.99 ounce per ton) silver within Whittle®-estimated surface
mine parameters.
- Mineral resources estimated by the
consulting firm of NCL Ingeniería y Construcción Ltda. in Santiago,
Chile.
- Mineral resources that are not mineral
reserves have not demonstrated economic viability.
- Tons and grades were converted from
metric tonnes and grams per tonne. Rounding may result in apparent
differences between tons and grades contained ounces.
The transaction is supported unanimously by the respective
boards of directors of both Coeur and Mirasol. The transaction does
not require the approval of the shareholders of either Coeur or
Mirasol.
Coeur expects the transaction to close before the end of 2012,
subject to customary closing conditions.
In November 2006, Coeur and Mirasol entered into an exploration
and joint venture option agreement with respect to the Joaquin
project. In 2010, Coeur vested at 51% interest and has since
proceeded to advance the project towards feasibility stage.
BMO Capital Markets is acting as financial advisor to Coeur and
Goodmans LLP is acting as legal counsel to Coeur in connection with
the acquisition.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding anticipated closing of the proposed
transaction, consolidation of ownership, exploration upside, silver
production and rate of return for the Joaquin project. 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, any failure to satisfy necessary closing conditions
under the definitive agreement, any failure or delay in obtaining
required governmental or stock exchange approvals, the risks and
hazards inherent in the mining business (including environmental
hazards, industrial accidents, weather or geologically related
conditions), changes in the market prices of gold and silver, the
uncertainties inherent in Coeur's production, exploratory and
developmental activities, including risks relating to permitting
and regulatory delays, 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, 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 and particularly
Argentina, Coeur's ability to raise additional financing necessary
to develop the Joaquin project, 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.
Donald J. Birak, Coeur's Senior Vice President of Exploration
and a qualified person under Canadian NI 43-101, supervised the
preparation of the scientific and technical information concerning
Coeur's mineral projects in this news release. For a description of
the key assumptions, parameters and methods used to estimate
mineral reserves and resources, as well as data verification
procedures and a general discussion of the extent to which the
estimates may be affected by any known environmental, permitting,
legal, title, taxation, socio-political, marketing or other
relevant factors, please see the Technical Reports for each of
Coeur's properties as filed on SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors - The United States Securities
and Exchange Commission permits U.S. mining companies, in their
filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce. We may
use certain terms in public disclosures, such as "measured,"
"indicated," "inferred” and "resources," that are recognized by
Canadian regulations, but that SEC guidelines generally prohibit
U.S. registered companies from including in their filings with the
SEC. U.S. investors are urged to consider closely the disclosure in
our Form 10-K which may be secured from us, or from the SEC's
website at http://www.sec.gov.
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