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Coeur d’Alene Mines Corporation Makes Proposal to Acquire Orko Silver Corp. for Cad$2.70 Per Share in Cash and Stock



  Coeur d’Alene Mines Corporation Makes Proposal to Acquire Orko Silver Corp.
  for Cad$2.70 Per Share in Cash and Stock

Proposal Offers Orko Shareholders Attractive Premium, Superior Value Certainty
Due to CAD$100M Cash Component, and Opportunity to Participate in Significant
          Upside Potential in Combined Company’s Shares and Warrants

   Combination Diversifies Coeur’s Precious Metals Asset Portfolio and Adds
                              Meaningful Growth

Business Wire

COEUR D’ALENE, Idaho -- February 13, 2013

Coeur d’Alene Mines Corporation (the “Company” or “Coeur”) (NYSE: CDE) (TSX:
CDM) today confirmed that it has submitted a binding proposal (“Coeur’s
Proposal”) to acquire all of the issued and outstanding common shares of Orko
Silver Corp. (“Orko”) (TSX VENTURE: OK) in a transaction with a total value of
approximately CAD$384 million. Orko today announced that its Board of
Directors has unanimously determined, after receiving the advice of its
financial and legal advisors, that Coeur’s Proposal constitutes a “Superior
Proposal” pursuant to its arrangement agreement with First Majestic Silver
Corporation (“First Majestic”) (FR.TO) (AG) (FMV.F). Orko has provided notice
of such determination to First Majestic. Orko also announced that under the
arrangement agreement, First Majestic now has five business days, expiring at
11:59 p.m. PST on Tuesday, February 19, 2013, to offer to amend the terms of
that agreement to match Coeur’s Proposal, failing which Orko will terminate
the arrangement agreement with First Majestic and enter into a definitive
agreement with Coeur reflecting Coeur’s Proposal.

Under the terms of Coeur’s Proposal, Orko shareholders may elect to receive in
exchange for each Orko share:

  * 0.0815 common shares of Coeur (“Coeur Shares”) and CAD$0.70 cash and
    0.01118 warrants to purchase Coeur shares (“Coeur Warrants”);
  * 0.1118 Coeur Shares and 0.01118 Coeur Warrants, subject to pro-ration as
    to the number of Coeur Shares if the total number of Coeur Shares elected
    by Orko shareholders exceeds approximately 11.6 million; or
  * CAD$2.60 in cash and 0.01118 Coeur Warrants, subject to pro-ration as to
    the amount of cash if the total cash elected by Orko shareholders exceeds
    CAD$100 million.

If all Orko shareholders were to elect either the all cash (and Coeur
Warrants) or the all share (and Coeur Warrants) alternative, each Orko
shareholder would receive 0.0815 Coeur Shares and CAD$0.70 in cash, together
with 0.01118 Coeur Warrants, for each Orko share.

Based on the closing prices of the shares of each of Coeur, Orko and First
Majestic as of February 12, 2013, Coeur’s Proposal implies a value of CAD$2.70
per Orko share, which represents a premium of approximately 71% to the
unaffected Orko share price on December 14, 2012, the last trading day prior
to the announcement of Orko’s agreement with First Majestic, and a premium of
approximately 25% to the implied value of the consideration offered pursuant
to the First Majestic arrangement agreement.

“We are pleased that Orko’s Board of Directors unanimously determined that our
proposal is superior to the First Majestic offer,” said Mitchell J. Krebs,
Coeur’s President and Chief Executive Officer. “Based upon the substantial
cash component of the proposal and the liquidity of Coeur’s common shares, we
believe our proposal provides Orko shareholders with an attractive premium,
superior value certainty, and the opportunity to share in the significant
upside potential of the combined entity. We have a demonstrated track record
of developing, commissioning and operating large-scale precious metals assets
as well as the financial resources necessary to bring Orko’s La Preciosa
project into production. The combination with Orko will deliver enhanced asset
and geographic portfolio diversification and robust growth prospects for our
combined shareholder base. We are committed to this strategic combination and
look forward to expeditiously executing the proposed agreement.”

Strategic Rationale of the Transaction

  * Continued Participation in the La Preciosa Project. Orko shareholders,
    through their ownership of Coeur Shares and Coeur Warrants, would receive
    a significant premium to the current Orko share price and would also have
    the opportunity to continue to participate in any future value increases
    associated with the development and operation of the La Preciosa project,
    which ranks as one of the world’s largest undeveloped primary silver
    projects.
  * Access to the Capabilities of Coeur. With its 80-year operating track
    record and demonstrated success in developing, commissioning and operating
    large-scale projects, Coeur has the necessary financial strength, and
    development and operating experience to bring the La Preciosa project into
    production. Coeur has successfully built and now operates the San
    Bartolomé mine in Bolivia (US$238 million capital cost, start-up in 2008),
    the Palmarejo mine in Mexico (US$353 million capital cost, start-up in
    2009) and the Kensington mine in Alaska (US$435 million capital cost,
    start-up in 2010) and as such Coeur believes it is better equipped than
    its peers to develop and operate La Preciosa.
  * Participation in a Company with Geographically Diverse Projects and Robust
    Growth Prospects. Orko shareholders would also benefit from having an
    equity position in a company with greater geographic diversity. At
    present, Coeur has interests in mining properties located in Mexico,
    Bolivia, Alaska, Nevada, Australia and Argentina and operates mines in
    Alaska, Nevada, Mexico and Bolivia. The combination would improve the
    overall profile of the combined business by further diversifying Coeur’s
    asset mix and by adding a world-class development asset to its portfolio.
    After closing the proposed transaction, the combined company would have an
    attractive portfolio of open-pit and underground operations and a robust
    growth profile. The commodity exposure of the combined entity would be
    approximately 75% silver and 25% gold.
  * Availability of Capital, Strong Cash Flow, and Substantial Production
    Profile. Coeur has over US$500 million in available liquidity to support
    mine development and further growth initiatives. In addition, Coeur
    generates substantial cash flow from its existing portfolio of mines.
    During the trailing twelve month period ended September 30, 2012, Coeur’s
    Adjusted EBITDA was US$406 million^1. (Net income was $22.5 million for
    the equivalent period.) In addition, Coeur produced 18.0 million ounces of
    silver and an all-time high 226,491 ounces of gold for the full year ended
    December 31, 2012.
  * Increased Market Capitalization of Coeur and Liquidity. Coeur is listed on
    both the New York Stock Exchange and Toronto Stock Exchange and has a
    market capitalization of more than US$2 billion. Coeur’s shares are highly
    liquid with an average daily trading volume of 1.6 million shares,
    representing US$38 million on a daily basis over the last twelve months.
    Coeur’s Board of Directors and management are confident that Orko
    shareholders would effectively view Coeur’s share consideration as an
    equivalent to cash as it would take just seven days to trade the entire
    share consideration under the proposed transaction.

Coeur’s Proposal has been approved by the Coeur Board of Directors and no
further corporate or shareholder approvals are required by Coeur to complete
the transaction. Coeur’s Proposal is not conditional on any financing.

Additional Transaction Details

Each whole Coeur Warrant will be exercisable for one Coeur Share for a period
of four years at an exercise price of US$30.00, all subject to adjustment in
accordance with the terms of the warrant (the “Coeur Warrants”). While Coeur
will use commercially reasonable efforts to register the Coeur Shares issuable
on exercise of the Coeur Warrants under applicable United States securities
laws and have the Coeur Warrants listed and posted for trading on the Toronto
Stock Exchange and New York Stock Exchange, the completion of such
registration and listing will not be a condition of closing of the
transaction.

In addition, Coeur will use commercially reasonable efforts, subject to
compliance with certain Coeur contractual obligations, to make any necessary
amendments to permit Orko shareholders who are residents of Canada for
purposes of the Income Tax Act (Canada) (other than such Orko shareholders who
are exempt from tax thereunder) and who would receive Coeur Shares under
Coeur’s Proposal to receive, instead of Coeur Shares, shares of a
Canadian-incorporated subsidiary of Coeur (the “Exchangeable Shares”) that are
exchangeable into Coeur Shares to allow such Orko shareholders to receive a
tax-deferred roll-over under the Income Tax Act (Canada) to the extent that
the non-share consideration received does not exceed the shareholder’s cost
base for Canadian tax purposes. While Coeur will use commercially reasonable
efforts to register the Coeur Shares issuable on exchange of the Exchangeable
Shares under applicable United States securities laws, the completion of such
registration will not be a condition of closing of the transaction.

Coeur’s Proposal contemplates that the Coeur Shares will be issued in a
transaction exempt from the registration requirements of the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”) pursuant to
Section 3(a)(10) of the U.S. Securities Act. Consequently, the Coeur Shares,
other than Coeur Shares to be issued upon exercise of the Coeur Warrants or
the exchange of the Exchangeable Shares, will not be registered under the U.S.
Securities Act or under any U.S. state securities laws. This news release
shall not constitute an offer to sell or a solicitation of an offer to
purchase the Coeur Shares, Coeur Warrants, Exchangeable Shares or any other
securities, and shall not constitute an offer, solicitation or sale in any
jurisdiction, province or state in which such an offer, solicitation or sale
would be unlawful.

Advisors

J.P. Morgan is serving as financial advisor to Coeur on this transaction and
Fasken Martineau DuMoulin LLP and Gibson, Dunn & Crutcher LLP are serving as
legal advisors.

Conference Call Information

Coeur will host a conference call and webcast at 9:00 a.m. EST today to
provide more information on this announcement. The webcast and accompanying
slides can be accessed at www.coeur.com. An audio archive of the call will be
available at Coeur’s website until March 13, 2013 at 11:59 p.m. EDT.

Conference Call Dial-in:     Domestic: 866-610-1072
                             International: 973-935-2840
                             Passcode: 10427347
 
Replay Dial-in:              Domestic: 800-585-8367
                             International: 404-537-3406
                             Passcode: 10427347

About Coeur

Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver
producer and a growing gold producer. The Company has four precious metals
mines in the Americas generating strong production, sales and cash flow in
continued robust metals markets. Coeur produces from its wholly owned
operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver
mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington
gold mine in Alaska. The Company also owns a non-operating interest in a
low-cost mine in Australia, and conducts ongoing exploration activities in
Mexico, Argentina, Nevada, Alaska and Bolivia.

     Adjusted EBITDA is a financial measure not calculated in accordance with
^1   U.S. generally accepted accounting principles. Please see the table in
     the Appendix for reconciliation of Adjusted EBITDA to U.S. GAAP.

Cautionary Statement

This news release contains forward-looking statements within the meaning of
securities legislation in the United States and Canada, including expectations
regarding the enterprise value of Orko, the value of Coeur’s shares and Orko’s
shares, the consideration to be issued pursuant to the proposal, the ability
of Coeur and Orko to consummate the transaction on the terms and in the manner
contemplated thereby, and Coeur operating results, production levels and
operating costs. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause 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
permits necessary for the planned Rochester expansion may not be obtained, the
risks and hazards inherent in the mining business (including environmental
hazards, industrial accidents, weather or geologically related conditions),
changes in the market prices of gold and silver, the uncertainties inherent in
Coeur's production, exploratory and developmental activities, including risks
relating to permitting and regulatory delays and disputed mining claims,
ground conditions, grade variability, any future labor disputes or work
stoppages, the uncertainties inherent in the estimation of gold and silver ore
reserves, changes that could result from Coeur's future acquisition of new
mining properties or businesses, reliance on third parties to operate certain
mines where Coeur owns silver production and reserves, the loss of any
third-party smelter to which Coeur markets silver and gold, 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 and 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. Current mineralized material estimates include disputed and
undisputed claims at Rochester. While the Company believes it holds a superior
position in the ongoing claim dispute, the Company believes an adverse legal
outcome would cause it to modify mineralized material estimates. 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.

Donald J. Birak, Coeur's Senior Vice President of Exploration and a qualified
person under Canadian National Instrument 43-101, supervised the preparation
of the scientific and technical information in this news release. For a
description of the key assumptions, parameters and methods used to estimate
mineral reserves and resources, as well as data verification procedures and a
general discussion of the extent to which the estimates may be affected by any
known environmental, permitting, legal, title, taxation, socio-political,
marketing or other relevant factors, please see the Technical Reports for each
of Coeur's properties as filed on SEDAR at www.sedar.com.

Cautionary Note to U.S. Investors-The United States Securities and Exchange
Commission permits U.S. mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can economically and
legally extract or produce. We may use certain terms in public disclosures,
such as "measured," "indicated," "inferred” and “resources," that are
recognized by Canadian regulations, but that SEC guidelines generally prohibit
U.S. registered companies from including in their filings with the SEC. U.S.
investors are urged to consider closely the disclosure in our Form 10-K which
may be secured from us, or from the SEC's website at http://www.sec.gov.

Additional Information and Where to Find It

This document relates to Coeur D’Alene Mines Corporation’s (“Coeur”) proposed
acquisition (the “Transaction”) of Orko Silver Corp. Shares of Coeur’s common
stock (the “Coeur Shares”) issuable upon (i) the exercise of warrants (the
“Warrants”) to acquire Coeur Shares to be issued by Coeur in connection with
the proposed Transaction and (ii) the exchange of exchangeable securities (the
“Exchangeable Shares”) to be issued by a subsidiary of Coeur in connection
with the proposed Transaction which may be registered pursuant to a
registration statement on Form S-4 to be filed with the U.S. Securities and
Exchange Commission (the “SEC”) or issued pursuant to an available exemption.
This document is not a substitute for any registration statement or any other
document that Coeur may file with the SEC or send to its shareholders in
connection with the offer and/or issuance of Coeur Shares in connection with
the exercise of the Warrants and exchange of the Exchangeable Shares.
Investors who may receive Warrants or Exchangeable Shares in the Transaction
are urged to read Coeur’s registration statement on Form S-4, if and when
filed, including the prospectus, and all other relevant documents that may be
filed with the SEC as and if they become available because they will contain
important information about the issuance of Coeur Shares upon the exercise of
any Warrants and exchange of any Exchangeable Shares. All documents, if and
when filed, will be available free of charge at the SEC’s website
(www.sec.gov). You may also obtain these documents by contacting Coeur’s
Investor Relations department at Coeur D’Alene Mines Corporation; Investor
Relations; (208) 665-0345; wyang@coeur.com. This document does not constitute
an offer to sell or the solicitation of an offer to buy any securities.

Non-U.S. GAAP Measures

This news release discloses our Adjusted EBITDA, which is a supplemental
financial measure not calculated under United States generally accepted
accounting principles (U.S. GAAP). We believe that this adjusted measure
provides meaningful information to assist management, investors and analysts
in understanding our financial results and assessing our prospects for future
performance. We believe Adjusted EBITDA is a useful indicator of our recurring
operations because it excludes items that may not be indicative of, or are
unrelated to our core operating results, and provides a better baseline for
analyzing trends in our underlying businesses.

APPENDIX
                                                 
(in thousands)                                    Twelve Months Ended
                                                  September 30, 2012
Net income (loss)                                 $     22,491
Income tax provision                              109,163
Interest expense, net of capitalized interest     29,800
Interest and other income                         (9,753          )
Fair value adjustments, net                       25,687
Loss on debt extinguishments                      3,886
Depreciation and depletion                        224,626          
Adjusted EBITDA                                   $     405,900    

Contact:

Coeur d’Alene Mines Corporation
Wendy Yang, Vice President, Investor Relations
(208) 665-0345
or
Stefany Bales, Director, Corporate Communications
(208) 667-8263
or
Joele Frank, Wilkinson Brimmer Katcher
Tim Lynch / Meaghan Repko / Averell Withers
(212) 355-4449
or
www.coeur.com
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