G-khan
11-10-2003, 07:34 PM
Coeur Signs Exclusive Letter of Intent to Acquire Assets of Mexican Silver Company
COEUR D'ALENE, Idaho, Nov 10, 2003 /PRNewswire-FirstCall via Comtex/ -- Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest primary silver producer, announced today the execution of a binding letter of intent granting Coeur an exclusive option to purchase the assets of Minera Real de Cosala S.A. de C.V. ("MRC"). MRC operates the La Verde underground silver mine and owns several other concessions situated on over 21,000 acres located 100 miles north of Mazatlan in Sinaloa State, Mexico.
Small-scale underground mining has taken place at La Verde for over twenty years, with total reported production of over 30 million ounces of silver and 40 million pounds of copper. In addition to the main La Verde deposit, there are numerous other mineralized zones in the immediate area that have the potential to contain additional silver reserves.
Dennis E. Wheeler, Coeur's Chairman and Chief Executive Officer, stated, "Coeur is excited to establish a presence in Mexico, which provides the Company with numerous opportunities to add to our production and reserves profile. The La Verde mine and surrounding areas represent a unique opportunity for Coeur to potentially develop a large, low-cost operation that will generate value over many years."
Coeur will conduct a confirmation sampling and drilling program over the next several months, which will focus on the viability of developing a larger-scale, low-cost operation. Under the terms of the agreement, Coeur will make annual escalating payments to MRC totaling $10 million over five years. Coeur may exercise its option to acquire the assets of MRC at any time by making the balance of the remaining payments. Coeur may also terminate its option at anytime. Assuming Coeur exercises its option, the Company anticipates continuing small-scale underground mining while developing a larger-scale operation, which will provide Coeur with immediate production and cash flow. The transaction is subject to due diligence. A final definitive agreement is currently being prepared.
Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Mexico and Bolivia.
This document contains numerous forward-looking statements relating to the Company's silver and gold mining business. The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Operating, exploration and financial data, and other statements in this document are based on information the company believes reasonable, but involve significant uncertainties as to future gold and silver prices, costs, ore grades, estimation of gold and silver reserves and resources, mining and processing conditions, changes that could result from the Company's future acquisition of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, and risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries. Actual results and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: Tony Ebersole Director of Investor Relations (800) 523-1535SOURCE Coeur d'Alene Mines Corporation
Tony Ebersole, Director of Investor Relations, +1-800-523-1535,for Coeur d'Alene Mines Corporationhttp://www.prnewswire.com (http://www.prnewswire.com/)
COEUR D'ALENE, Idaho, Nov 10, 2003 /PRNewswire-FirstCall via Comtex/ -- Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest primary silver producer, announced today the execution of a binding letter of intent granting Coeur an exclusive option to purchase the assets of Minera Real de Cosala S.A. de C.V. ("MRC"). MRC operates the La Verde underground silver mine and owns several other concessions situated on over 21,000 acres located 100 miles north of Mazatlan in Sinaloa State, Mexico.
Small-scale underground mining has taken place at La Verde for over twenty years, with total reported production of over 30 million ounces of silver and 40 million pounds of copper. In addition to the main La Verde deposit, there are numerous other mineralized zones in the immediate area that have the potential to contain additional silver reserves.
Dennis E. Wheeler, Coeur's Chairman and Chief Executive Officer, stated, "Coeur is excited to establish a presence in Mexico, which provides the Company with numerous opportunities to add to our production and reserves profile. The La Verde mine and surrounding areas represent a unique opportunity for Coeur to potentially develop a large, low-cost operation that will generate value over many years."
Coeur will conduct a confirmation sampling and drilling program over the next several months, which will focus on the viability of developing a larger-scale, low-cost operation. Under the terms of the agreement, Coeur will make annual escalating payments to MRC totaling $10 million over five years. Coeur may exercise its option to acquire the assets of MRC at any time by making the balance of the remaining payments. Coeur may also terminate its option at anytime. Assuming Coeur exercises its option, the Company anticipates continuing small-scale underground mining while developing a larger-scale operation, which will provide Coeur with immediate production and cash flow. The transaction is subject to due diligence. A final definitive agreement is currently being prepared.
Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Mexico and Bolivia.
This document contains numerous forward-looking statements relating to the Company's silver and gold mining business. The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Operating, exploration and financial data, and other statements in this document are based on information the company believes reasonable, but involve significant uncertainties as to future gold and silver prices, costs, ore grades, estimation of gold and silver reserves and resources, mining and processing conditions, changes that could result from the Company's future acquisition of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, and risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries. Actual results and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: Tony Ebersole Director of Investor Relations (800) 523-1535SOURCE Coeur d'Alene Mines Corporation
Tony Ebersole, Director of Investor Relations, +1-800-523-1535,for Coeur d'Alene Mines Corporationhttp://www.prnewswire.com (http://www.prnewswire.com/)