Coeur d'Alene Mines Corporation (NYSE: CDE) (TSX: CDM) announced that it subscribed by way of an agreement with International Northair Mines Ltd. (TSXV: INM) for the sale to Coeur of 10,750,000 units of Northair at a purchase price of C$0.28 per unit, for total consideration of C$3,010,000, as part of a private placement transaction of Northair issuing in the aggregate 12,536,000 Units.
Each Unit consists of one previously unissued common share in Northair (a "Share") and one-half of one Share purchase warrant of Northair (a "Warrant"). Each whole Warrant entitles Coeur to acquire one Share at an exercise price of C$0.40 at any time during the 18 months following the closing of the transaction. The Warrants are subject to an accelerated exercise provision if the share price of Northair closes at or above $0.85 for 10 or more consecutive trading days.
With closing of the transaction, Coeur now owns and controls 10,750,000 Shares (representing approximately 13.1% of the issued and outstanding Shares in Northair) and owns and controls 10,750,000 Warrants (representing approximately 85.7% of the issued and outstanding Warrants in Northair). On a fully-diluted basis, this represents ownership and control of 18.2% of all the issued and outstanding Shares of Northair.
Northair is a mineral exploration company engaged in the acquisition and development of gold and silver properties in Mexico. Northair is currently drilling its La Cigarra and Sierra Rosario projects in Mexico.
Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company has three new, large precious metals mines generating significantly higher production, sales and cash flow in continued strong metals markets. In 2011, Coeur realized the first full year of production and cash flow from all three of its new, 100%-owned mines: the San Bartolomé silver mine in Bolivia, the Palmarejo silver-gold mine in Mexico, and the Kensington gold mine in Alaska. In addition, the Company began producing silver and gold from its long-time Rochester in Nevada in the fourth quarter of 2011. The Company also owns a non-operating interest in a low-cost mine in Australia, and conducts ongoing exploration activities near its operations in Argentina, Mexico, Alaska and Nevada. Additional information can be accessed through the Company's website at www.coeur.com.