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Coeur d'Alene Mines (CDE +1.2%) purchases the 49% of the Joaquin silver-gold project in...

Coeur d'Alene Mines (CDE +1.2%) purchases the 49% of the Joaquin silver-gold project in Argentina it doesn't already own from Mirasol Resources (MRZLF.PK) for $60M in cash and stock. CDE believes Joaquin has "substantial exploration upside and the potential to become a significant silver producer for the company."
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Comments (3)
  • ducat
    , contributor
    Comments (258) | Send Message
     
    For those adverse to dilution, it is important to know that Coeur will only put 1.3 million shares into this deal. This contrasts to the approximate 5 million shares in their current share buy back program and only about 1.5% of the current float.

     

    When the Joaquin project is developed it should kick Coeur to get into that elite >20 million silver ounce annual production club and add to their already robust gold production. There is certainly risk in the project considering the uncertain status of Argentina's mining rule development, but the price seems to account for this risk. I believe that when the dust settles, this will turn out to be a very good deal for Coeur.
    11 Dec 2012, 07:43 PM Reply Like
  • JWOD
    , contributor
    Comment (1) | Send Message
     
    How much cash and how many shares? It seems strange we just had a share buy back only to issue new shares but, again, the unknown is how many shares.

     

    I have a feeling CDE has some drilling results waiting in the wings that might be VERY interesting. Is it time to buy more shares or are we swinging towards dilution of shares again?
    12 Dec 2012, 02:42 AM Reply Like
  • MoreBob
    , contributor
    Comments (50) | Send Message
     
    Aren't there countries with better business relations than Argentina in which to invest money? Or is the price cheap enough to justify the risk?
    12 Dec 2012, 09:13 PM Reply Like
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