Mirasol Resources Ltd. (TSX-V: MRZ, Frankfurt: M8R) Mirasol Resources Ltd. ("Mirasol") is pleased to announce it has reached an agreement to sell its 49% interest in the Joaquin Silver-Gold Project, Argentina, to Coeur d'Alene Mines Corporation ("Coeur") (NYSE:CDE; TSX:CDM), which has been operating on the Joaquin Project through an Argentine subsidiary.
Under the terms of the agreement, Mirasol will receive a total consideration of US$60 million, which includes a payment of approximately US$30 million in cash and a quantity of Coeur common shares valued at approximately US$30 million based on the ten trading day volume weighted average price prior to the date of Mirasol's acceptance of Coeur's offer, in return for Coeur acquiring Mirasol's subsidiary which holds the Joaquin property.
Mirasol's president and CEO, Mary Little, said, "Mirasol is delivering on its strategy of building value through making new discoveries in the areas where we explore. In the case of Joaquin, our partner Coeur plans to carry forward while we continue to engage in discovery-oriented exploration programs in Latin America. The proceeds of the deal will help sustain these efforts for the next several years. We are pleased to formalize the Joaquin sale and are committed to providing our shareholders with the best opportunities for exploration success."
The transaction has been approved by the Boards of Directors of Mirasol Resources Ltd. and Coeur d'Alene Mines Corporation but remains subject to customary closing conditions, including the receipt of regulatory approvals. The transaction does not require the approval of the shareholders of either Coeur or Mirasol.
In November 2006, Mirasol and Coeur entered into an exploration and joint venture option agreement with respect to the Joaquin project. In 2010, Coeur vested at 51% interest and has since proceeded to advance the project towards feasibility stage.
The Joaquin silver-gold deposit is a grass roots discovery initially identified by Mirasol through its proprietary exploration approach, upon which Coeur has defined a resource of Canadian National Instrument N.I. 43-101 mineral estimate of 38.4 million ounces silver in the Measured and Indicated categories plus 31.3 million ounces silver in the Inferred category. In addition, Joaquin contains 39,600 gold ounces in Measured and Indicated resources and 19,400 gold ounces in Inferred (Table 1 and Technical Report of September 21, 2012 at www.sedar.com). The N.I. 43-101 resource estimate was prepared by independent consulting firm NCL Ingenieria y Construccion Ltda. of Santiago, Chile, using a $30 per silver ounce and $1,500 per gold ounce price, and a resource cut-off of 30 g/t (grams per tonne) for silver oxide material and a 34 g/t silver cut-off for silver sulphide material, within Whittle(®)-estimated surface pit mine parameters.