Coeur Mining Confirms Acquisition of Paramount Gold and Silver

Further to rumors that were circulating at the start of this month, Coeur Mining Inc. (NYSE:CDE) has confirmed that will acquire Paramount Gold and Silver Corp. (NYSEMKT:PZG) in an all-stock deal valued at $146 million. Paramount will spin off to existing stockholders in a separate company, which will likely be named Paramount Nevada Gold.

As quoted in the press release:

• Paramount’s San Miguel Project (which includes the Don Ese deposit) covers over 121,000 hectares
• (approximately 299,000 acres) surrounding Coeur’s Palmarejo mine complex in Chihuahua, Mexico
• The Don Ese deposit extends across a shared property boundary onto Coeur’s land holdings at Palmarejo
• and is located approximately 800 meters from Coeur’s Guadalupe deposit, which is currently being
• developed
• Don Ese consists of significantly higher grade silver and gold mineralization than Guadalupe, and is not
• subject to any non-government third-party royalty or stream obligations
• Don Ese represents the southeast extension of Coeur’s Independencia structure
• Coeur plans to develop Don Ese by a 1,000 meter decline adjacent to the existing Guadalupe surface
• infrastructure at an initial cost next year of approximately $15 million, and anticipates initial production
• from Don Ese by the end of 2015, ramping up to 2,500 tons per day by the end of 2017

Coeur’s president and CEO, Mitchell J. Krebs, said:

By adding Paramount’s San Miguel Project and particularly the Don Ese deposit to the ongoing mining activities at our Guadalupe deposit, Palmarejo will be well-positioned to remain one of the world’s top producing silver and gold mines with significantly higher grades and lower costs. Paramount’s Mexican assets strengthen the long-term viability of Palmarejo throughout the price cycle and enhance Coeur’s growth profile. We expect the transaction to lower our overall unit costs, improve our 2 free cash flow in the current metal price environment, and provide near-term growth while preserving our liquidity.

Click here to read the Coeur Mining Inc. (NYSE:CDE) press release