Coeur Agrees To Sell Bolivian Subsidiary
Coeur Mining, Inc. (NYSE: CDE) says it has agreed to sell subsidiary Empresa Minera Manquiri, S.A. , which is the owner and operator of the San Bartolomé Mine in Bolivia, to Argentum Investments, AB. Under the all-stock transaction, Coeur will receive a 2% net-smelter-return royalty on all metals that go through the San Bartolomé processing facility, starting on the first anniversary of the closing of the transaction. Coeur estimates the value of this NSR to be around $5 million. The deal also includes a provision for refunds of pre-closing value-added taxes. “The sale of 100% of the shares of Manquiri reflects our strategy to continually optimize our portfolio and to focus on developing and operating high-quality, North American precious-metals assets,” says Mitchell J. Krebs, Coeur’s president and chief executive officer. “San Bartolomé was an important operation for the company after it was constructed and placed into production in 2008. However, the mine’s short remaining life, higher operating costs and future estimated closure-related costs led the company to conclude that a sale to a new owner at this time made strong strategic sense. By retaining a 2% NSR, Coeur will also preserve upside exposure to San Bartolomé as Argentum continues to operate the mine and pursue opportunities to generate additional value from this asset.” The transaction is expected to close in early 2018.