All amounts are expressed in US$ unless otherwise indicated.
This news release contains forward-looking information about
expected future events. Readers should refer to the "Cautionary
Statement" at the end of this news release.
CHICAGO and VANCOUVER, Jan. 17,
2017 /CNW/ - Coeur Mining, Inc. ("Coeur") (NYSE: CDE) and
Pan American Silver Corp. ("Pan American") (NASDAQ: PAAS) (TSX:
PAA) today announced a definitive agreement under which Pan
American will acquire 100% of Coeur's Joaquin project, located in
the Santa Cruz province of
southern Argentina.
Under the terms of the agreement, consideration payable to Coeur
will include $15 million in cash and
$10 million in Pan American
stock. Coeur will also retain a 2.0% net smelter returns
royalty ("NSR") on the Joaquin project. The transaction is
expected to close in the first quarter of 2017, subject to
customary closing conditions.
"This transaction reflects our strategy to monetize non-core
assets and redeploy the proceeds into higher-quality,
higher-return, nearer-term growth opportunities. By retaining
a 2.0% NSR, Coeur will also retain upside exposure to
Joaquin. Together with the sale of the past-producing Martha
Mine last year, this transaction will allow us to realize holding
cost savings and represents a reduction in the Company's overall
geographic footprint," said Mitchell J.
Krebs, Coeur's President and Chief Executive Officer.
"The Joaquin project is well-suited for our Manantial Espejo
operation in Santa Cruz. The
project is located approximately 145 kilometres from our mine, well
within trucking distance, and our plant will have available
capacity when open-pit mining is completed, which is expected to be
in early 2017. We have begun work on technical studies for the
Joaquin project to determine how much of the high-grade portion of
Joaquin's mineralized material can be economically treated at
Manantial Espejo. Adding high-grade satellite deposits that are
prevalent in the region around our Manantial Espejo mine is an
effective way to extract additional value from our investment in
the Province of Santa Cruz," said
Michael Steinmann, President and CEO
of Pan American Silver.
About Coeur
Coeur Mining is a well-diversified,
growing precious metals producer with five precious metals mines in
the Americas employing approximately 2,000 people. Coeur produces
from its wholly owned operations: the Palmarejo silver-gold complex
in Mexico, 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. The Company also
has a non-operating interest in the Endeavor mine in Australia. In addition, the Company has two
silver-gold exploration stage projects - the La Preciosa project in
Mexico and the Joaquin project in
Argentina. Coeur conducts ongoing
exploration activities in Alaska,
Nevada, South Dakota and Mexico.
About Pan American Silver
Pan American Silver Corp. is
one of the largest primary silver producers in the world. Pan
American owns and operates seven mines located in Mexico, Peru,
Argentina and Bolivia. Pan
American also owns several development projects in the USA, Mexico,
Peru and Argentina. The Company's mission is to be the
world's pre-eminent silver producer, with a reputation for
excellence in discovery, engineering, innovation and sustainable
development. The Company is headquartered in Vancouver, B.C. and its shares trade on NASDAQ
(PAAS) and the Toronto Stock Exchange (PAA).
Cautionary Statement
This news release contains forward-looking statements or
information within the meaning of securities legislation in
the United States and Canada, including expectations for the
completion of the transaction between Coeur and Pan American,
Coeur's investments in near-term, high-quality organic growth
opportunities, completion of the Manantial Espejo open pit,
completion of technical studies and treatment of mineralized
material from Joaquin at Manantial Espejo. These forward-looking
statements and information reflect Coeur and Pan American's current
views with respect to future events and are necessarily based upon
a number of assumptions that, while considered reasonable, are
inherently subject to significant operational, business, economic
and regulatory uncertainties and contingencies. These assumptions
include: customary closing conditions being satisfied in a timely
manner. The foregoing list of assumptions is not exhaustive. Such
forward-looking statements and information also involve known and
unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements or
information. Such factors include, among others, the 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. Actual results, developments and timetables
could vary significantly from the estimates presented. Readers are
cautioned not to put undue reliance on forward-looking statements
or information. Coeur and Pan American disclaim any intent or
obligation to update publicly such forward-looking statements or
information, whether a result of new information, future events or
otherwise, except to the extent required by applicable law.
Additionally, neither Coeur nor Pan American undertakes any
obligation to comment on analyses, expectations or statements made
by third parties in respect of the content of this news
release.
SOURCE Pan American Silver Corp.