Coeur Comments on Wheaton River Board Announcement Coeur Offers Superior Prop
sal ( Canada NewsWire )
COEUR D'ALENE, Idaho, May 31, 2004 (Canada NewsWire via COMTEX) -- Coeur
d'Alene Mines Corporation (NYSE: CDE) today made the following statement
regarding Wheaton River Minerals Ltd.'s (TSX: WRM, AMEX: WHT) comments today:
"The combination of Coeur and Wheaton River is compelling and provides superior
value -- and the market agrees, based on the trading since our announcement,"
said Dennis E. Wheeler, Chairman and Chief Executive Officer of Coeur. "For
Wheaton River shareholders, this transaction offers higher total value, the only
cash component, greater trading liquidity, and superior organic growth in the
Americas. We have received a positive reception from Wheaton River shareholders
and will continue to meet with them to inform them of our proposal.
"We are continuing to pursue this as a friendly transaction and we have offered
to meet with the Wheaton River Board to discuss our premium offer and respond to
any questions they may have. We are surprised and disappointed that Wheaton
River's Board has made a recommendation to its shareholders without conducting
any due diligence on Coeur or its properties. While we are disappointed that
Wheaton River's Board has decided to proceed with a transaction that provides
its shareholders with significantly less value than Coeur's offer, Wheaton River
shareholders will have the opportunity to make their own decision at their
shareholder meeting on June 8, 2004," Mr. Wheeler added.
"On January 1, 2004, Coeur completed its restructuring. We eliminated C$394
(US$284) million of high interest debt, and Coeur today is a company with cash
of C$322 (US$235) million and no net debt. The market has recognized our
successful transformation making Coeur's shares among the best performing in the
market place; and Coeur's past losses are no longer relevant," Mr. Wheeler
concluded.
In its offer to Wheaton River, Coeur provided a point-by-point comparison of
Coeur's offer with the pending IAMGOLD transaction. The comparison clearly
demonstrates the superiority of the Coeur offer, and is repeated here:
Coeur Offer IAMGOLD Offer Superior
Proposal
0.649 Exchange + Cash 0.55 Exchange
1. Value of Offer
May 27, 2004 C$4.50 C$4.06 Coeur
March 30, 2004 C$5.86 C$5.14 Coeur
2. Cash in Offer per Share C$0.50 (US$205mm) Nil Coeur
3. Operating Expertise 70 years Nil Coeur
4. Trading & Liquidity
Liquidity $75 mm/day $45 mm/day Coeur
Pro-Forma Exchange NYSE/TSX TSX/AMEX Coeur
5. Growth Projects
Projects
Contributed 2 Projects + 2 Expansion 1 Expansion - 19% Coeur
- Wholly Owned minority interest
6. Profile
Silver Production World's Largest Primary 6.5 mm ozs Coeur
Silver Co.
Gold Production Top 10 Gold Producer Top 10 Gold Producer -
Cash Costs Cash Costs Below $125/oz Cash Costs Below -
$125/oz
7. Reserves & Resources
Reserves 9 mm ozs 9 mm ozs -
Reserves + Resources 21 mm ozs 24 mm ozs -
Coeur d'Alene Mines Corporation is the world's largest primary silver producer,
as well as a significant, low-cost producer of gold. The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia.
Cautionary Statement
The United States Securities and Exchange Commission permits mining companies,
in their filings with the SEC, to disclose only those mineral deposits that a
company can economically and legally extract or produce. We use the term
"resource" in this press release which the SEC guidelines strictly prohibit us
from including in our filings with the SEC. Investors are urged to consider
closely the disclosure in our Form 10-K for the year ended December 31, 2003 and
Form 10-Q for the quarter ended March 31, 2004. You can review and obtain copies
of that filing from the SEC website at sec.gov .
This document contains numerous forward-looking statements relating to the
Company's silver and gold mining business. The United States Private Securities
Litigation Reform Act of 1995 provides a "safe harbor" for certain
forward-looking statements. Such forward-looking statements include the
statements above as to the impact of the proposed acquisition on both the
combined entity and the Company's shareholders. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside the Company's
control. These include negotiation and completion of a formal transaction
agreement, governmental regulatory processes, the Company's ability to
successfully integrate the operations of Wheaton River, assumptions with respect
to future revenues, expected mining program performance and cash flows and the
outcome of contingencies. Operating, exploration and financial data, and other
statements in this document are based on information the company believes
reasonable, but involve significant uncertainties as to future gold and silver
prices, costs, ore grades, estimation of gold and silver reserves, mining and
processing conditions, the completion and/or updating of mining feasibility
studies, changes that could result from the Company's future acquisition of new
mining properties or businesses, the risks and hazards inherent in the mining
business (including environmental hazards, industrial accidents, weather or
geologically related conditions), regulatory and permitting matters, risks
inherent in the ownership and operation of, or investment in, mining properties
or businesses in foreign countries, as well as other uncertainties and risk
factors set out in the Company's filings from time to time with the SEC,
including, without limitation, the Company's reports on Form 10-K and Form 10-Q.
Actual results and timetables could vary significantly from the estimates
presented. Readers are cautioned not to put undue reliance on forward-looking
statements. The Company disclaims any intent or obligation to update publicly
these forward-looking statements, whether as a result of new information, future
events or otherwise.
This communication is neither an offer to purchase nor a solicitation of an
offer to sell shares of Wheaton River or Coeur. This communication is not a
solicitation of a proxy from any security holder of Coeur d'Alene Mines
Corporation or Wheaton River Minerals Ltd. If a transaction is agreed upon or an
offer commenced, Coeur will file a proxy statement/prospectus and any other
relevant documents concerning the proposed transaction with Wheaton River with
the SEC and the securities commissions or equivalent regulatory authorities in
Canada. YOU ARE URGED TO READ ANY SUCH PROXY STATEMENT/PROSPECTUS IF AND WHEN IT
BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS IF AND WHEN FILED WITH THE
SEC AND THE SECURITIES COMMISSIONS OR EQUIVALENT REGULATORY AUTHORITIES IN
CANADA BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You will be able to
obtain any such proxy statement/prospectus (if and when it becomes available)
and any other documents filed with the SEC free of charge at the SEC's website,
sec.gov . In addition, you may obtain the proxy statement/prospectus
(if and when it becomes available) and the other documents filed by Coeur with
the SEC by requesting them in writing from, 400 Coeur d'Alene Mines Building,
505 Front Avenue, Coeur d'Alene, Idaho 83814, Attn: Investor Relations, tel:
(208) 667-3511.
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION:
newswire.ca
CONTACT: For further information: James A. Sabala, Chief Financial Off
cer,
+1-208-769-8152, or Mitchell J. Krebs, Vice President Of Cor
orate
Development, +1-773-388-2902, both of Coeur d'Alene Mines Co
poration; or
Joele Frank, or Judith Wilkinson of Joele Frank, Wilkinson B
immer Katcher,
+1-212-355-4449, for Coeur d'Alene Mines Corporation
URL: Web site: coeur.com
News release via Canada NewsWire, Toronto 416-863-9350
Copyright (C) 2004 CNW, All rights reserved
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KEYWORD: COEUR D'ALENE, Idaho
INDUSTRY KEYWORD: MNG
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