Coeur Further Enhances Its Liquidity Position
Coeur d’Alene Mines Corporation announced it has entered into a new $20 million facility with Mitsubishi International Corporation.
Structured as a gold lease facility under which Coeur received proceeds of $20 million from the sale of 23,529 ounces of gold lent to it by MIC, the Company will then deliver these gold ounces to MIC over the next twelve months. Coeur currently produces gold as a by-product at its Rochester silver mine in Nevada and will produce a significant gold by-product at its Palmarejo silver project in Mexico, which is expected to begin production late next quarter. This amount of gold represents approximately 25% of the Company’s 2009 expected gold production. To secure its obligations, Coeur has pledged certain assets and cash flows.
Mitchell J. Krebs, Chief Financial Officer, commented, “This transaction demonstrates the Company’s commitment to maintaining sufficient liquidity to fund the execution of its growth strategy. This source of capital will contribute to the final phases of construction at the Palmarejo silver and gold project in Mexico, which is expected to begin generating substantial cash flow once in production next quarter.”
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