Coeur Announces Agreement to Acquire Concessions Near the Palmarejo Mine from Fresnillo
20 Noviembre 2023 - 6:00AM
Business Wire
Transaction rationalizes land package to the
East of existing operations and unlocks significant near-term and
longer-term resource potential
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
announced that its subsidiary, Coeur Mexicana, S.A. de C.V., has
signed a purchase agreement with a subsidiary of Fresnillo plc
(“Fresnillo”) to acquire mining concessions adjacent to the
Palmarejo gold-silver complex located in the state of Chihuahua,
Mexico. Total consideration includes a cash payment of
approximately $25 million ($10 million due at closing, which is
expected to occur sometime in 2024) and a future royalty on certain
ounces discovered on the purchased concessions.
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Together, the concessions comprise nearly 7,000 acres and
include claims adjacent to two primary zones within Palmarejo’s
existing footprint as shown in yellow on the map below. The first
set of concessions cover the southeast extensions of the
Independencia and Nacion deposits where mining currently takes
place. The second set of concessions, located to the northeast,
surrounds multiple targets containing mineralization and historic
resources that were added through the 2015 acquisition of Paramount
Gold and Silver. Intensive field work including mapping and
sampling across the entire Eastern land package, which was ramped
up over the past twelve months and has shown very encouraging
results, is expected to accelerate further following closing to
test the most advanced targets along these two main trends.
“This transaction fills in two key strategic gaps in the large
land package East of the Palmarejo mine which unlocks significant
potential in areas unencumbered by the existing Franco-Nevada gold
stream. Once complete, our land holdings outside the gold
stream-encumbered areas will increase by nearly 20% and the overall
Palmarejo complex will consist of a single nearly contiguous
district spanning over 70,000 acres of highly prospective and
underexplored ground in the heart of the prolific Sierra Madre
Occidental,” said Mitchell J. Krebs, Coeur President and Chief
Executive Officer. “In the near-term, we intend to pursue the
southeast extensions of existing deposits that trend onto the
claims, which provides opportunities to add to Palmarejo’s mine
life and leverage existing infrastructure. Another near-term
post-closing priority will be to integrate, update and potentially
add to historic resources in the northeast area of the previously
fragmented land package, which represents an opportunity to further
boost Palmarejo’s overall mineral resources to the East.”
The terms of the transaction include an up-front cash payment to
Fresnillo of $10 million payable upon closing, an additional $10
million payable 12 months after closing, and an additional $5
million payable 24 months after closing. The concessions will be
subject to a royalty payment of $25 per ounce1 for each new
gold-equivalent (“AuEq”) ounce of resource discovered between
450,000 and two million AuEq ounces. Closing is subject to
applicable regulatory approvals in Mexico.
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with four wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, the Rochester silver-gold
mine in Nevada, the Kensington gold mine in Alaska and the Wharf
gold mine in South Dakota. In addition, the Company wholly-owns the
Silvertip silver-zinc-lead exploration project in British
Columbia.
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 proposed acquisition of mineral
properties and the expected effects of the acquisition including
the resulting exploration potential in the Palmarejo complex and
impacts to mineral resources. 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 proposed acquisition are not realized,
the risk that the closing of the proposed acquisition will not
occur due to failure to obtain required approvals or otherwise, 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 or higher treatment and refining charge
environment, the uncertainties inherent in Coeur’s production,
exploratory and developmental activities, including risks relating
to permitting and regulatory delays, changes in mining laws, ground
conditions and, grade and recovery variability, any future labor
disputes or work stoppages (involving the Company and its
subsidiaries or third parties), the uncertainties inherent in the
estimation of mineral reserves and resources, changes that could
result from Coeur’s future acquisition of new mining properties or
businesses, the loss of access or insolvency of any third-party
refiner or smelter to which Coeur markets its production, the
potential effects of the COVID-19 pandemic, including impacts to
the availability of our workforce, continued access to financing
sources, government orders that may require temporary suspension of
operations at one or more of our sites and effects on our suppliers
or the refiners and smelters to whom the Company markets its
production and on the communities where we operate, the effects of
environmental and other governmental regulations and government
shut-downs, 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. This does not constitute an offer of any securities for
sale.
Notes
- Subject to an annual inflationary adjustment.
Source: Coeur Mining
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For Additional Information Coeur Mining, Inc. 200 S.
Wacker Drive, Suite 2100 Chicago, Illinois 60606 Attention: Jeff
Wilhoit, Director, Investor Relations Phone: (312) 489-5800
www.coeur.com
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