Coeur d’Alene acquires Mexican gold and silver mine

Coeur d’Alene Mines, the US primary silver and gold miner, has reported that its shareholders have approved its takeover of junior mining companies, Palmarejo Silver and Gold, and Bolnisi Gold.

The merger has already been approved by shareholders for both Palmarejo and Bolnisi, and the transaction is expected to be completed by the end of the year.

The companies are both involved in the Palmarejo gold and silver mine, which is currently under construction in Chihuahua, Mexico.

The mine is believed to contain measured and indicated resources of 88.7 million ounces of silver and one million ounces of gold.

Production is expected to commence at Palmarejo in early 2009, with an average annual yield of 10.4 million ounces of silver and 115,000 ounces of gold.

The acquisitions will increase Coeur’s silver production to nearly 30 million ounces by 2009, a 142% rise on 2007.

At the same time, gold production is expected to increase by 65% between 2007 and 2009.

The all-share transaction is valued at $1.1 billion and will give 2.715 Coeur shares for each Palmarejo share and 0.682 Coeur shares for each Bolnisi share.