Coeur d’Alene Mine (CDE) Buys Interest in the Joaquin Silver-Gold Project for $60M

December 11, 2012 8:32 AM EST Send to a Friend
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Coeur d’Alene Mines Corporation (NYSE: CDE) 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.

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.


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