Mirasol agrees to sell its interest in the Joaquin Silver-Gold project to Coeur d'Alene mines
Wednesday, Dec 12, 2012VANCOUVER, Dec. 11, 2012 /CNW/ - 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.
Exploration at Mirasol's Projects is supervised by Stephen C. Nano, Vice
President of Exploration; Timothy Heenan, Exploration Manager; and Dr. Paul Lhotka, Principal Geologist. All technical information for the Company's projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Drill core, rock chip and stream sediment samples are collected under the supervision of Company geologists in accordance with standard industry practice. Samples are dispatched via commercial transport to an ISO 9001:2000-accredited laboratory in Mendoza, Argentina for analysis.
Results are routinely examined by an independent geochemist to ensure laboratory performance meets required standards.
Assay results from diamond drill core or RC drill samples may be higher, lower or similar to results obtained from surface samples.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mirasol Resources Ltd.