17/07/2009 - 09:46

Perilya buys back Broken Hill silver

17/07/2009 - 09:46

Bookmark

Save articles for future reference.

US-based Coeur d'Alene Mines Corporation says it will sell the silver rights at Broken Hill mine back to Perilya for $US55 million ($A69 million).

Perilya buys back Broken Hill silver

US-based Coeur d'Alene Mines Corporation says it will sell the silver rights at Broken Hill mine back to Perilya for $US55 million ($A69 million).

Coeur purchased the 100 per cent of the silver rights from Perilya for $A36.9 million in September 2005.

It said it had recovered about 127.1 per cent of the original consideration as of March 31, and expects to realise a gain of $23.2 million from the sale.

"By selling its interest, Coeur will further strengthen its balance sheet and enhance its liquidity," Coeur chief executive Dennis Wheeler said in a statement.

"Proceeds of the sale will contribute to our growth initiatives, including construction of the final tailings facility at the Kensington gold mine in Alaska.

"This transaction reflects the company's strategic transition to large, long-life mines that deliver economies of scale and exhibit superior exploration potential."

The Idaho miner said it had received a total of 6.1 million ounces of payable silver from the mine since its acquisition.

 

 

The announcement is below:

 

 

Coeur d'Alene Mines Corporation (NYSE:CDE, TSX:CDM, ASX:CXC) announced today that it has agreed to sell back to Perilya Limited ("Perilya"), its 100% interest in the silver contained at the Broken Hill mine in Australia for US$55.0 million in cash. Coeur originally purchased this interest from Perilya in September 2005 for $36.9 million. Closing of this transaction is expected to take place on July 31st.

"By selling its interest, Coeur will further strengthen its balance sheet and enhance its liquidity. Proceeds of the sale will contribute to our growth initiatives, including construction of the final tailings facility at the Kensington gold mine in Alaska." said Dennis Wheeler, Chairman, President and Chief Executive Officer. "This transaction reflects the Company's strategic transition to large, long life mines that deliver economies of scale and exhibit superior exploration potential."

Since completion of the transaction in 2005, Coeur has received a total of more than 6.1 million ounces of payable silver from the Broken Hill mine. As of March 31, 2009, CDE Australia had recovered approximately 127.1% of the original consideration.

As a result of this transaction, the Company expects to realize a gain on the sale of assets in the third quarter of approximately $23.2 million, net of income taxes.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options