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|
|Measured and Indicated Resources|
|Total Measured and Indicated||13,448||2.85||0.003||38,400||39,600|
- 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.
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