Market Overview

Coeur Mining to Acquire Northern Empire Resources

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Coeur Mining, Inc. ("Coeur") (NYSE:CDE) and Northern Empire
Resources Corp. ("Northern Empire") (TSXV:NM) are pleased to
announce that they have entered into a definitive agreement (the "Arrangement
Agreement
") pursuant to which Coeur has agreed to acquire, by way of
a plan of arrangement (the "Arrangement"), all of the issued and
outstanding securities of Northern Empire not currently owned by Coeur.

Northern Empire's principal asset is the Sterling Gold Project located
in Nevada, which consists of four high-grade heap-leachable deposits
with a total inferred gold resource of approximately 709,000 ounces
averaging 2.23 g/t located on a dominant 143 km2 land package
approximately 185 km from Las Vegas within the historic Walker Lane
trend. The high-grade Sterling gold deposit is a fully-permitted,
past-producing mine with near-term, low-cost, low-capital production
potential. The remaining deposits are collectively known as the Crown
Block, which contain significant exploration potential, and the land
package also includes 17 new targets that remain untested.

Transaction Highlights

  • Transaction values Northern Empire at approximately US$90 million
    (C$117 million), inclusive of the approximately 7.4 million Northern
    Empire shares currently owned by Coeur, representing a premium of 40%
    to Northern Empire's 20-day trailing volume-weighted average share
    price ("VWAP") based on the 20-day VWAPs for both companies as
    at August 1, 2018
  • Acquisition adds multiple high-quality, high-grade oxide gold deposits
    to Coeur's evolving development pipeline that have the potential to
    become future long-life, low-cost operating assets
  • Expands Coeur's historical focus on Nevada, considered one of the
    world's top mining jurisdictions
  • Coeur will be focused on a quick restart of the Sterling Mine while
    aggressively exploring the highly prospective Crown Block and other
    targets
  • Development of the Sterling Gold Project benefits from Coeur's
    financial flexibility through its strong balance sheet and diversified
    cash flow generation

Under the Arrangement, each common share of Northern Empire will be
exchanged for 0.1850 (the "Exchange Ratio") common shares of
Coeur. Based on the closing price of Coeur's common shares on the New
York Stock Exchange ("NYSE") on August 1, 2018, the transaction
values each Northern Empire share at C$1.64. The consideration received
by Northern Empire shareholders represents a 40% premium based on the
20-day VWAP of Coeur from all trading on the NYSE and Northern Empire
from all trading on the TSX Venture Exchange ("TSXV") for the
period ended August 1, 2018 and a premium of 20% over Northern Empire's
closing share price on the TSXV on August 1, 2018. Under the
Arrangement, Coeur will also acquire all of the outstanding options and
warrants exercisable for Northern Empire common shares at the
in-the-money value of such securities, satisfied by delivery of Coeur
common shares based on the Exchange Ratio.

Expected Benefits to Coeur Shareholders

  • Unique opportunity to generate near-term value from expected
    high-margin production and cash flow at the Sterling Mine while
    aggressively exploring the highly prospective Crown Block deposits and
    other targets at the property with the goal of developing a long-life,
    low-cost gold operation
  • Enhances Coeur's existing U.S.-centric footprint in a top jurisdiction
    where it has operated open pit, heap leach operations for over thirty
    years
  • Crown Block ground is the core of an emerging and highly prospective
    gold district – potential to unlock value through aggressive
    success-based exploration and drilling program
  • Adds projects with the potential of being first and second quartile
    cost operations
  • Potential opportunity to leverage Coeur's U.S. net operating loss tax
    synergies
  • Property and district scale exploration opportunities

Expected Benefits to Northern Empire Shareholders

  • Immediate premium of 40% to the 20-day volume weighted average price
    of Northern Empire shares based on the 20-day VWAPs for both companies
    as at August 1, 2018
  • Total return of 119% to investors who participated in the C$0.75
    acquisition financing and 82% to those who participated in the most
    recent C$0.90 financing
  • All investors who bought shares of Northern Empire have an opportunity
    for positive gains as the consideration exceeds the all-time high
  • Continued exposure to the Sterling Gold Project as well as the
    opportunity to benefit from the ownership of Coeur shares, a Company
    poised for significant growth
  • Reduced investment risk by transitioning from an "single asset
    development" company to a balanced portfolio of high quality producing
    mines and near-term development projects

"The acquisition of Northern Empire, with its high-grade Sterling Gold
Project and large, prospective land package, comes at an opportune time
for us to bolster our pipeline with high-quality projects. The
transaction, which provides a unique opportunity for Coeur to leverage
its operational expertise in Nevada, a leading mining jurisdiction, and
add expected near-term, high margin production and cash flow with
minimal upfront capital, together with significant exploration
potential, satisfies all of our acquisition criteria and is accretive on
all key financial and operational metrics," said Mitchell Krebs,
President & CEO of Coeur.

Michael G. Allen, President, CEO and Director of Northern Empire stated,
"Our focus has been steadfast in creating value for shareholders.
Acquiring the Sterling Gold Project and rapidly advancing it towards an
accretive transaction such as this is an exceptional outcome. We believe
Coeur's focus and expertise in the Western US will result in Sterling
reaching its full potential. Northern Empire is pleased to enter into
this agreement, and its Board unanimously recommends the transaction to
shareholders. We wish to thank our employees and stakeholders for all
their hard work advancing the Sterling Gold Project."

Transaction Summary

The proposed business combination will be effected by way of a Plan of
Arrangement completed under the Business Corporations Act
(British Columbia). The Arrangement will be subject to the approval of
at least 66-⅔% of the votes cast by Northern Empire security holders
present in person or represented by proxy at a special meeting of
Northern Empire security holders expected to take place in September
2018 and the approval of the majority of the minority of Northern Empire
security holders after excluding votes cast in respect of Northern
Empire shares held by Coeur. In addition to the Northern Empire
shareholder approvals, the Arrangement is also subject to the receipt of
certain regulatory, court and stock exchange approvals and other closing
conditions customary in transactions of this nature.

The Arrangement Agreement has been unanimously approved by the boards of
directors of each of Northern Empire and Coeur. Cormark Securities and
Canaccord Genuity have each provided a fairness opinion to the board of
directors of Northern Empire that, subject to the assumptions,
limitations and qualifications set out in such fairness opinion, the
consideration to be received by the Northern Empire shareholders
pursuant to the Transaction is fair, from a financial point of view, to
the Northern Empire shareholders (other than Coeur).

The directors and executive officers of Northern Empire, holding in
aggregate approximately 8% of Northern Empire's outstanding common
shares have entered into customary voting support agreements in favor of
the Arrangement.

The Arrangement Agreement includes customary restrictive covenants
including a non-solicitation covenant on the part of Northern Empire and
gives Northern Empire the right to accept a superior proposal in certain
circumstances and terminate the Arrangement Agreement. Coeur has a five
business day right to match any superior proposal. The Arrangement
Agreement also provides for the payment by Northern Empire of a C$4.7
million termination fee if the Arrangement Agreement is terminated in
certain circumstances and a reciprocal expense reimbursement of
C$500,000 payable under certain circumstances.

Further information regarding the Arrangement will be contained in a
management information circular that Northern Empire will prepare, file
and mail in due course to the Northern Empire security holders in
connection with the special meeting of the Northern Empire security
holders to be held to consider the Arrangement. All security holders are
urged to read the information circular once available as it will contain
additional important information concerning the Arrangement. The
Arrangement Agreement will be filed on the SEDAR.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities. The Coeur shares to be
issued under the Arrangement have not been and will not be registered
under the U.S. Securities Act of 1933, and may not be offered or
sold in the United States absent registration or an applicable exemption
from registration requirements. It is anticipated that any securities to
be issued under the Arrangement will be offered and issued in reliance
upon the exemption from the registration requirements of the U.S.
Securities Act
of 1933 provided by Section 3(a)(10) thereof.

Advisors and Counsel

BMO Capital Markets is acting as exclusive financial advisor to Coeur.
Goodmans LLP, Gibson, Dunn & Crutcher LLP, Perkins Coie LLP and Lawson
Lundell LLP are acting as legal counsel to Coeur. Cormark Securities
Inc. is acting as exclusive financial advisor to Northern Empire.
DuMoulin Black LLP, Dorsey and Whitney LLP, and Parsons Behle & Latimer
are acting as legal counsel to Northern Empire. Cormark Securities Inc.
and Canaccord Genuity Inc., have provided opinions to the Northern
Empire Board of Directors and Special Committee, respectively, as of the
date of such opinions and subject to the assumptions, limitations, and
qualifications stated in such opinions, the consideration to be received
by the Northern Empire shareholders under the transaction is fair, from
a financial point of view, to the Northern Empire shareholders other
than Coeur and its affiliates.

About Coeur

Coeur Mining, Inc. is a well-diversified, growing precious metals
producer with five mines in North America. Coeur produces from its
wholly-owned operations: the Palmarejo silver-gold complex in Mexico,
the Silvertip silver-zinc-lead mine in British Columbia, the Rochester
silver-gold mine in Nevada, the Kensington gold mine in Alaska, and the
Wharf gold mine in South Dakota. In addition, Coeur has interests in
several precious metals exploration projects throughout North America.

About Northern Empire

Northern Empire Resources Corp. (TSXV:NM) (OTC:PSPGF) is expanding and
discovering heap leach gold deposits in Nevada. Northern Empire
presently has initial resource statements on four potentially
heap-leachable deposits, three of which are past producing, at the
100%-owned Sterling Gold Project.

Cautionary Statements

This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada, including
statements regarding the anticipated acquisition of Northern Empire by
Coeur and the anticipated benefits thereof. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause Coeur and/or Northern Empire's actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the risk
that the Northern Empire acquisition does not close on a timely basis or
at all or that some or all of the anticipated benefits thereof are not
achieved, the risks and hazards inherent in the mining business
(including risks inherent in developing large-scale mining projects,
environmental hazards, industrial accidents, weather or geologically
related conditions), changes in the market prices of gold and silver and
a sustained lower price environment, the uncertainties inherent in
Coeur's production, exploratory and developmental activities, including
risks relating to permitting and regulatory delays, ground conditions,
grade variability, any future labor disputes or work stoppages, the
uncertainties inherent in the estimation of resources, changes that
could result from Coeur's future acquisition of new mining properties or
businesses, the loss of any third-party smelter to which Coeur markets
commodities, the effects of environmental and other governmental
regulations, the risks inherent in the ownership or operation of or
investment in mining properties or businesses in foreign countries,
Coeur's ability to raise additional financing necessary to conduct its
business, make payments or refinance its debt, as well as other
uncertainties and risk factors set out in filings made from time to time
with the United States Securities and Exchange Commission, and the
Canadian securities regulators, including, without limitation, Coeur's
most recent reports on Form 10-K or Form 10-Q. Actual results,
developments and timetables could vary significantly from the estimates
presented. Readers are cautioned not to put undue reliance on
forward-looking statements. Coeur and Northern Empire disclaim any
intent or obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or otherwise.
Additionally, Coeur and Northern Empire undertake no obligation to
comment on analyses, expectations or statements made by third parties in
respect of Coeur and/or Northern Empire, their financial or operating
results or their securities.

Michael G. Allen, P. Geo., President & CEO of Northern Empire, and a
Qualified Person as defined by NI 43-101, has approved the scientific
and technical information contained in this news release. For further
information on the Sterling Gold Project, and a description of the key
assumptions, parameters and methods used to estimate mineral resources,
as well as data verification procedures and a general discussion of the
extent to which the estimates may be affected by any known
environmental, permitting, legal, title, taxation, socio-political,
marketing or other relevant factors, please refer to the technical
report on the project dated July 12, 2017, found on the Northern
Empire's website, www.northernemp.com,
and SEDAR at www.sedar.com.

Sterling Gold Project Resource Estimate – Effective March 29, 2017*

 

Sterling Deposit Inferred Gold Resource (Metric Measurement)

 

Resource Type     Cutoff Grade     Tonnes     Average Grade     Contained Au
      (Au g/t)     (‘000)    

(Au g/t)

    (oz ‘000)
Surface     0.3     3,081     2.57     254
Surface     0.7     2,399     3.15     243

Surface

    1.0     1,958     3.67     231
Non-pit constrained     1.0     614     2.50     49
Non-pit constrained     1.4     454     2.98     43
Non-pit constrained     1.7     350     3.38     38
 

Notes

  • Results based on cyanide soluble assay testing.
  • CIM definitions are followed for classification of Mineral Resource.
  • Mineral Resource surface pit extent has been estimated using a gold
    price of US$1,200 per ounce and mining cost of US$2.10 per ton
    (US$2.31 per tonne) and a leached gold recovery of 88%.
  • Non-pit constrained resources below the surface pit and targeted for
    underground mining are based on a gold price of US$1,200 per ounce and
    mining costs of $US45 per ton. Other modifying factors remain
    unchanged.
  • Imperial (A-series) to metric (B-series) conversion: 1 ton =0.907185
    tonne, 1 opt = 34.2857 g/t.
  • Totals may not represent the sum of the parts due to rounding.
  • The Mineral Resource estimate has been prepared by Derek Loveday, P.
    Geo. of Norwest Corporation in conformity with CIM "Estimation of
    Mineral Resource and Mineral Reserves Best Practices" guidelines and
    are reported in accordance with the Canadian Securities Administrators
    NI 43-101. Mineral resources are not mineral reserves and do not have
    demonstrated economic viability. There is no certainty that any
    mineral resource will be converted into mineral reserve.
 

Daisy Deposit Inferred Gold Resource (Metric Measurement)

 
Resource Type     Cutoff Grade     Tonnes     Average Grade     Contained Au
      (Au g/t)     (‘000)     (Au g/t)     (oz ‘000)
Surface     0.3     5,362     1.34     232
Surface     0.7     3,766     1.71     207
Surface    

1.0

    2,556     2.12     174
 

Notes

  • Results based on fire assay testing.
  • CIM definitions are followed for classification of Mineral Resource.
  • Mineral Resource surface pit extent has been estimated using a gold
    price of US$1,200 per ounce and mining cost of US$2.10 per ton
    (US$2.31 per tonne) and a leached gold recovery of 88%.
  • Imperial (A-series) to metric (B-series) conversion: 1 ton =0.907185
    tonne, 1 opt = 34.2857 g/t.
  • Totals may not represent the sum of the parts due to rounding.
  • The Mineral Resource estimate has been prepared by Derek Loveday, P.
    Geo. of Norwest Corporation in conformity with
  • CIM "Estimation of Mineral Resource and Mineral Reserves Best
    Practices" guidelines and are reported in accordance with the Canadian
    Securities Administrators NI 43-101. Mineral resources are not mineral
    reserves and do not have demonstrated economic viability. There is no
    certainty that any mineral resource will be converted into mineral
    reserve.
 

Secret Pass Deposit Inferred Gold Resource (Metric Measurement)

 
Resource Type     Cutoff Grade     Tonnes     Average Grade     Contained Au
      (Au g/t)     (‘000)     (Au g/t)     (oz ‘000)
Surface     0.3     11,143     0.93     335
Surface     0.7     6,096     1.30     256
Surface     1.0     3,534     1.65     188
 

Notes

  • Results based on fire assay testing.
  • CIM definitions are followed for classification of Mineral Resource.
  • Mineral Resource surface pit extent has been estimated using a gold
    price of US$1,200 per ounce and mining cost of US$2.10 per ton
    (US$2.31 per tonne) and a leached gold recovery of 80%.
  • Imperial (A-series) to metric (B-series) conversion: 1 ton =0.907185
    tonne, 1 opt = 34.2857 g/t.
  • Totals may not represent the sum of the parts due to rounding.
  • The Mineral Resource estimate has been prepared by Derek Loveday, P.
    Geo. of Norwest Corporation in conformity with CIM "Estimation of
    Mineral Resource and Mineral Reserves Best Practices" guidelines and
    are reported in accordance with the Canadian Securities Administrators
    NI 43-101. Mineral resources are not mineral reserves and do not have
    demonstrated economic viability. There is no certainty that any
    mineral resource will be converted into mineral reserve.
 

SNA Deposit Inferred Gold Resource (Metric Measurement)

 
Resource Type     Cutoff Grade     Tonnes     Average Grade     Contained Au
      (Au g/t)     (‘000)     (Au g/t)     (oz ‘000)
Surface     0.3     3,875     1.03     126
Surface     0.7     2,543     1.30     105
Surface     1.0     1,510     1.61     78
 

Notes

  • Results based on fire assay testing.
  • CIM definitions are followed for classification of Mineral Resource.
  • Mineral Resource surface pit extent has been estimated using a gold
    price of US$1,200 per ounce and mining cost of US$2.10 per ton
    (US$2.31 per tonne) and a leached gold recovery of 88%.
  • Imperial (A-series) to metric (B-series) conversion: 1 ton =0.907185
    tonne, 1 opt = 34.2857 g/t.
  • Totals may not represent the sum of the parts due to rounding.
  • The Mineral Resource estimate has been prepared by Derek Loveday, P.
    Geo. of Norwest Corporation in conformity with CIM "Estimation of
    Mineral Resource and Mineral Reserves Best Practices" guidelines and
    are reported in accordance with the Canadian Securities Administrators
    NI 43-101. Mineral resources are not mineral reserves and do not have
    demonstrated economic viability. There is no certainty that any
    mineral resource will be converted into mineral reserve.

* Cutoff grade for resource is 1.0 g/t other than the non-pit
constrained Sterling Deposit resource, which has a 1.7 g/t cutoff
grade); all other cutoff grades are included for sensitivity analysis
purposes

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