CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today announced the closing of the sale of its La Preciosa silver project, located in Durango, Mexico , to Avino Silver & Gold Mines Ltd. (“Avino”) (TSX/NYSE American: ASM) by way of the previously announced definitive agreement (the “Agreement”).
Pursuant to the agreement, the consideration for the transaction includes:
$15.3 million paid in cash at closing,
$5.0 million promissory note that matures before the first anniversary of the closing of the transaction,
Equity consideration of 14.0 million units, paid at closing, each consisting of one Avino common share and one-half Avino common share purchase warrant, at a premium 25% from the 20-day volume-weighted average price as of October 26, 2021,
A deferred cash consideration of approximately $8.8 million to be paid no later than the first anniversary of the initial production of any part of the La Preciosa Project,
Contingent payments of $0.25 per silver equivalent ounce (subject to inflationary adjustment) on any new mineral reserves discovered and declared outside of the current resource area of the La Preciosa project, up to a maximum payment of $50.0 million, and
Two royalties covering the La Preciosa land package, including (i) a 1.25% net smelter revenue royalty on the properties covering the Gloria and Abundancia areas of the La Preciosa project and (ii) a royalty 2.00% on the gross value on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any payment of new mineral reserves paid to Coeur
As part of the transaction, Coeur will be granted pre-emption rights to maintain its pro rata ownership interest in Avino and the right to appoint a director to Avino’s board of directors or an observer to the board of directors for as long as Coeur retains a minimum stake of 10% in Avino.
The sale of La Preciosa is consistent with the Company’s strategy of monetizing non-core assets and prioritizing high-return investment growth in the exploration and expansion of its North American assets, including the Rochester POA 11 expansion in Nevada, which is expected to be completed mid-next year.
Coeur Mining, Inc. is a well-diversified and growing United States precious metals producer with four wholly-owned operations: Palmarejo Gold-Silver Complex in Mexico, Rochester Silver-Gold Mine in Nevada, Kensington Gold Mine in Alaska. and the Wharf Gold Mine in South Dakota. In addition, the Company wholly owns the Silvertip silver-zinc-lead development project in British Columbia and holds interests in several precious metal exploration projects in North America.