Coeur Mining acquires Wharf gold mine from Goldcorp

22 February 2015 (Last Updated February 22nd, 2015 18:30)

Coeur Mining has completed its previously announced acquisition of Wharf gold mine located near Lead, South Dakota from Goldcorp for $105m.

Coeur Mining has completed its previously announced acquisition of Wharf gold mine located near Lead, South Dakota from Goldcorp for $105m.

Coeur acquired all of the issued and outstanding shares of the mine's common stock from a subsidiary of Goldcorp, according to the terms of the agreement.

For the remainder of the year, Wharf gold mine is expected to produce 74,000oz to 78,0001oz of gold relative to sales per gold equivalent ounce of $750 to $8,251.

"The acquisition of Wharf further establishes Coeur as a leading, growing producer of silver and gold in the Americas."

Coeur expects to complete a mineral reserve and resource estimate for Wharf mine in the first half of this year.

The acquisition is expected to increase Coeur's 2015 earnings before interest, taxes, depreciation, and amortisation (EBITDA) by more than 30% and reduce its consolidated unit costs, while representing a 24% increase in the company's total gold reserves.

Coeur president and CEO Mitchell Krebs said: "The acquisition of Wharf further establishes Coeur as a leading, growing producer of silver and gold in the Americas, while improving our overall portfolio with strong cashflow generation in a low-risk jurisdiction.

"We believe this transaction will generate an attractive rate of return and is immediately accretive to cashflow and net asset value."

Wharf is said to have been in production for more than 30 years after starting operations with an estimated three-year mine life, when it produced more than two million ounces of gold.

The mine has a current reserve base of 560,000oz of gold.