Coeur d'Alene shareholders say yes to $1.1 billion merger; deal could close by year end

By Lisa Kerner

Charlotte, N.C., Dec. 10 - Coeur d'Alene Mines Corp. shareholders "overwhelmingly" approved the company's three-way merger with Bolnisi Gold NL and Palmarejo Silver and Gold Corp. at a special meeting held Friday.

More than 88% of the shares voted were favor of the deal, which was first announced in May 2007. Shareholders for both Bolnisi and Palmarejo have also approved the transaction, which is expected to close before the end of the year.

"We are extremely pleased with the outcome of today's vote and the addition to Coeur of the Palmarejo silver and gold project, which is expected to increase company-wide silver production to nearly 30 million ounces by 2009, and at very low costs," Coeur d'Alene chairman, president and chief executive officer Dennis E. Wheeler said in a company news release.

"The addition of the Palmarejo project to the company's existing asset mix will transform Coeur into a high-growth, low-cost, long-life, and sustainable world-leading silver company with exciting exploration potential."

It was previously reported that Coeur d'Alene would acquire all of the shares of Bolnisi, as well as all of the shares of Palmarejo not owned by Bolnisi, in a transaction valued at about $1.1 billion.

Bolnisi shareholders will receive 0.682 of a Coeur d'Alene share, or about $2.76, for each Bolnisi share they own or may elect to receive CHESS Depositary Interests representing Coeur d'Alene shares.

Palmarejo shareholders will receive 2.715 Coeur d'Alene shares, or about $11.00, for each Palmarejo share they own.

Coeur d'Alene is expected to issue about 271.3 million new shares.

Bolnisi and Palmarejo shareholders will also receive a cash payment equal to $0.003 per Bolnisi share and $0.003 per Palmarejo share. The companies currently own 100% of the Palmarejo Project, a silver project located in Mexico, which Coeur d'Alene plans to leverage.

Longueuil, Quebec-based Palmarejo is a silver and gold exploration company with operations in the Temoris District of Chihuahua, Mexico.

Bolnisi Gold is a Sydney, Australia-based gold mining and exploration company.

Coeur d'Alene is a Coeur d'Alene, Idaho-based silver and gold producer with mining interests in Alaska, Nevada, Argentina, Australia, Bolivia, Chile and Tanzania.

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