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SILVER IN THE NEWS
Coeur dAlene closing purchase of Mexican Co.
Article # : silver153
Coeur d'Alene closing purchase of Mexico silver mine
Mon Dec 10, 2007 1:32pm EST
NEW YORK, Dec 10 (Reuters) - Silver miner Coeur d'Alene Mines Corp (CDE.N) (CDM.TO) said on Monday that it expected to close its $1.1 billion purchase of junior miners Bolnisi Gold NL BSG.AX and Palmarejo Silver and Gold Corp PJO.V by the end of the year.
The deal will give the Coeur d'Alene, Idaho-based company ownership of the Palmarejo silver and gold project in Mexico, which is expected to boost its annual silver production by approximately 50 percent, to 30 million ounces.
Coeur said that more than 88 percent of shares voted at a stockholder meeting last week favored the proposed deal. Last week, shareholders for both Bolnisi and Palmarejo voted overwhelmingly in favor of the transaction.
A Coeur spokesman said the company expected to complete the transaction in the fourth quarter.
The miner launched an offer in May to buy the owners of the Palmarejo project in a friendly deal that it said would create the world's leading primary silver producer.
Currently under construction in Chihuahua, Mexico, the Palmarejo project is expected to begin production in early 2009 of approximately 10.4 million ounces of silver and 115,000 ounces of gold per year.
"The addition to Coeur of the Palmarejo silver and gold project ... is expected to increase company-wide silver production to nearly 30 million ounces by 2009, and at very low costs," said Coeur Chief Executive Dennis Wheeler.
Under the transaction, Coeur offered 0.682 of a share for each share of Australia's Bolnisi, and 2.715 shares for each share of Toronto-listed Palmarejo. (Reporting by Steve James; Editing by Lisa Von Ahn)
Source: reuters.com