Coeur To Acquire Paramount Gold And Silver - Quick Facts

(RTTNews) - Coeur Mining Inc. (CDM.TO, CDE) announced it has entered into a merger agreement under which Coeur has agreed to acquire all of the outstanding shares of Paramount Gold and Silver Corp. (PZG, PZG.TO) in an all-stock transaction valued at $146 million. Upon closing of the transaction, it is projected that Coeur will issue approximately 32.7 million shares of common stock to Paramount stockholders. Existing Coeur stockholders will own approximately 76% of the combined entity's outstanding shares and Paramount stockholders will own the remaining approximately 24%.

Immediately prior to completion of the merger, Paramount will spin-off to its existing stockholders a separate, publicly traded company, expected to be named Paramount Nevada Gold Corp., a subsidiary that owns the Sleeper Gold Project and other assets in Nevada. As part of the transaction, Coeur will provide $10 million in cash to the new company and receive a 4.9% common share interest.

Mitchell Krebs, Coeur's CEO said, "By adding Paramount's San Miguel Project and particularly the Don Ese deposit to the ongoing mining activities at our Guadalupe deposit, Palmarejo will be well-positioned to remain one of the world's top producing silver and gold mines with significantly higher grades and lower costs."

The Don Ese deposit extends across a shared property boundary onto Coeur's land holdings at Palmarejo and is located approximately 800 meters from Coeur's Guadalupe deposit, which is currently being developed. Assuming utilization of excess processing facility capacity, Coeur anticipates the combined Don Ese and Guadalupe deposits could produce an average of approximately six million ounces of silver and 110,000 ounces of gold annually over the next eight years.