Coeur Completes Acquisition of Northern Empire Resources
October 1, 2018
CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
announced that it has successfully completed the acquisition of Northern
Empire Resources Corp. (“Northern Empire”) (TSXV:NM), by way of
the previously announced plan of arrangement (the “Arrangement”).
“The acquisition of Northern Empire represents a unique opportunity for
Coeur to bolster its development pipeline with high-quality growth
projects and is strongly aligned with our strategy to deliver low-cost
production and growth in top jurisdictions,” said Mitchell J. Krebs,
Coeur’s President and Chief Executive Officer. “We are excited to
leverage our operational expertise in Nevada, one of the world’s top
mining jurisdictions, where we have been operating the Rochester open
pit, heap leach mine for over thirty years. Restarting the Sterling open
pit mine will allow us to add near-term, high-margin production and cash
flow with minimal expected upfront capital, while the significant
exploration potential at the Crown Block offers the opportunity for a
second, larger future operation that can create significant, long-term
stockholder value. Additionally, we believe that the strategic timing of
prudent acquisitions, such as Northern Empire, provides meaningful
upside potential for the Company.”
Northern Empire’s principal asset is the Sterling Gold Project, which
comprises a 35,000-acre (14,300-hectare) land package approximately 115
miles (185 km) north of Las Vegas, Nevada. The high-grade Sterling Gold
Project is a past-producing mine with all major permits in hand that has
near-term, low-cost, low-capital production potential. The remaining
deposits include Daisy, Secret Pass and SNA, collectively known as the
Crown Block, contain significant exploration potential. The
underexplored land package also includes multiple new, undrilled targets
previously identified by Northern Empire that remain untested.
Under the terms of the Arrangement, each issued and outstanding common
share of Northern Empire not already owned by Coeur was exchanged for
0.1850 shares of Coeur common stock and holders of outstanding
in-the-money Northern Empire options and warrants received shares of
Coeur common stock based on the same exchange ratio. Upon closing of the
Arrangement, Coeur had approximately 199.2 million shares of common
stock outstanding.
Coeur’s financial advisor was BMO Capital Markets and its legal advisors
were Goodmans LLP, Gibson, Dunn & Crutcher LLP, Perkins Coie LLP and
Lawson Lundell LLP.
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious metals
producer with five mines in North America. Coeur produces from its
wholly-owned operations: the Palmarejo silver-gold complex in Mexico,
the Silvertip silver-zinc-lead mine in British Columbia, the Rochester
silver-gold mine in Nevada, the Wharf gold mine in South Dakota and the
Kensington gold mine in Alaska. In addition, the Company has interests
in several precious metals exploration projects throughout North America.
Cautionary Statements
This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada, including
expectations regarding the Northern Empire acquisition. 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 the anticipated benefits of the transaction are not achieved on a
timely basis or at all, 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 environment, the uncertainties
inherent in Coeur’s production, exploratory and developmental
activities, including risks relating to permitting and regulatory
delays, ground conditions, grade variability, any future labor disputes
or work stoppages, the uncertainties inherent in the estimation of gold,
silver, lead and zinc reserves and resources, changes that could result
from Coeur’s future acquisition of new mining properties or businesses,
the loss of any third-party smelter to which Coeur markets its
production, the effects of environmental and other governmental
regulations, 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 or 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.
Contacts
Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago,
Illinois 60603
Attention: Paul DePartout, Director, Investor
Relations
Phone: (312) 489-5800
www.coeur.com