Galena Mine sold
THE ASSOCIATED PRESS
COEUR D'ALENE, Idaho -- The Galena Mine, one of only two operating silver mines in northern Idaho's Silver Valley, is being sold, its owners announced.
Coeur d'Alene Mines Corp. announced Monday that it has struck a deal to sell the mine and other properties to U.S. Silver Corp. for $15 million. The sale to the privately held company is expected to close by June 1.
The mine's 180 workers are expected to keep their jobs, and officials at U.S. Silver said they want to invest aggressively in hopes of reversing the mine's downward slide. Despite rising silver prices, the Galena lost $2.2 million last year.
Coeur d'Alene Mines Chairman Dennis Wheeler said in a statement that cash from the sale will be reinvested in more profitable operations. In recent years, the Coeur d'Alene-based company has targeted low-cost silver properties in South America and Australia.
Besides the Galena Mine, the sale includes the closed Coeur Mine and other exploration properties in the Silver Valley. Coeur d'Alene Mines operated the properties in conjunction with Asarco Inc. until 1999, when it acquired full ownership.
The Galena is one of the deepest mines in North America, with workers descending about a mile underground to extract silver and copper ore.
U.S. Silver, incorporated in Delaware with headquarters in Wallace, was formed specifically to purchase Coeur d'Alene Mines' Silver Valley assets. With silver prices topping $12 an ounce, the Galena is still valuable, U.S. Silver Chief Executive Officer John Ryan said.
The company expects to spend heavily on exploration and capital improvements at the Galena.
"In order for this mine to be successful in the long term, there needs to be additional discoveries of silver resources," U.S. Silver President Mark Hartmann said.
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Information from: The Spokesman-Review, spokesmanreview.com
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