Coeur Announces Filing of Definitive Proxy Statement

    Special Meeting of Shareholders to Vote on Matters Related to Proposed
Acquisition of Bolnisi and Palmarejo to Be Held on December 3, 2007

    COEUR D'ALENE, IDAHO, October 19 /CNW/ - Coeur d'Alene Mines Corporation
(NYSE:   CDE, TSX: CDM) today announced that it has filed a definitive proxy
statement regarding the proposed acquisition of Bolnisi Gold NL (ASX: BSG) and
Palmarejo Silver and Gold Corporation (TSX-V: PJO). The Company expects to
commence mailing the proxy statement and all relevant materials to Coeur
shareholders early next week.

    A special meeting of the shareholders of Coeur, to consider matters
relating to the proposed acquisitions of Bolnisi and Palmarejo, will be held
on December 3, 2007 at 9:30 a.m., local time, at The Coeur d'Alene Resort and
Conference Center, Second Street and Front Avenue, Coeur d'Alene, Idaho. Coeur
stockholders of record as of the close of business on October 19, 2007 will be
entitled to vote at the special meeting. The merger is expected to close in
the fourth quarter of 2007.

    As previously announced on May 3, 2007, Coeur, Bolnisi, and Palmarejo
entered into agreements to merge, which were approved unanimously by their
respective Boards of Directors. Pursuant to the agreements, Coeur will acquire
all of the shares of Bolnisi, and all the shares of Palmarejo not owned by
Bolnisi, in a transaction valued at approximately US$1.1 billion. The
combination will create the world's undisputed leader in silver.

    The Board of Directors of Coeur unanimously approved the transaction and
the issuance of Coeur common stock, and recommends that all Coeur shareholders
vote "FOR" the issuance of Coeur shares in the transaction and the amendment
to Coeur's articles of incorporation to increase the authorized number of
Coeur shares. The proposals require the approval of a majority of the Coeur
shares that are present or represented by proxy at the shareholder meeting.

    Shareholders are encouraged to read the Company's definitive proxy
materials in their entirety as they provide, among other things, a detailed
discussion of the process that led to the proposed merger and the reasons
behind the Board of Directors' unanimous recommendation that stockholders vote
FOR the issuance of Coeur shares in the transaction and the amendment to
Coeur's articles of incorporation to increase the authorized number of Coeur

    Coeur shareholders are reminded that their vote is very important
regardless of the number of shares of common stock they own. Whether or not
shareholders are able to attend the Special Meeting in person, they should
complete, sign and date the proxy card and return it in the prepaid and
addressed envelope as soon as possible or submit a proxy through the Internet
or by telephone as described on the proxy card accompanying the definitive
proxy statement.

    Shareholders who have questions about the merger or need assistance in
submitting their proxy or voting their shares should contact D.F. King & Co.,
Inc., which is assisting Coeur, toll-free at (800) 901-0068 or (collect) at
(212) 269-5550.

    About Coeur

    Coeur d'Alene Mines Corporation is one of the world's leading primary
silver producers and a growing gold producer. The company has mining interests
in Alaska, Argentina, Australia, Bolivia, Chile, Nevada, and Tanzania. In
2006, Coeur produced 12.8 million ounces of silver and 116,000 ounces of gold.
Cash costs in 2006 were $3.33 per ounce of silver for 2006.

    Cautionary Statement

    This press release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada, including
statements regarding the terms and conditions of the proposed transaction and
anticipated operating results. Such statements are subject to numerous
assumptions and uncertainties, many of which are outside the control of Coeur,
Bolnisi or Palmarejo, as the case may be. Operating, exploration and financial
data, and other statements in this press release are based on information that
Coeur, Bolnisi or Palmarejo, as the case may be, believes is reasonable, but
involve significant uncertainties affecting the business of Coeur, Bolnisi or
Palmarejo, as the case may be, including, but not limited to, future gold and
silver prices, costs, ore grades, estimation of gold and silver reserves,
mining and processing conditions, construction schedules, currency exchange
rates, and the completion and/or updating of mining feasibility studies,
changes that could result from future acquisitions 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 filings made from time to time with the SEC and the Ontario Securities
Commission, including, without limitation, Coeur's reports on Form 10-K and
Form 10-Q and Palmarejo's Annual Information Form. Additionally, there are
risks that the parties will not proceed with the proposed transaction, that
the ultimate terms of the proposed transaction will differ from those that
currently are contemplated, and that the proposed transaction will be not be
successfully completed for any reason (including the failure to obtain the
required approvals or clearances from regulatory authorities). 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, Bolnisi and Palmarejo 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, Bolnisi and
Palmarejo undertake no obligation to comment on analyses, expectations or
statements made by third parties in respect of Coeur, Bolnisi and Palmarejo,
their financial or operating results or their securities or the proposed

    Additional Information

    The definitive proxy statement that Coeur has filed with the United
States Securities and Exchange Commission ("SEC") and Canadian securities
regulators and mailed to its shareholders contains information about Coeur,
Bolnisi, Palmarejo, the Palmarejo Project, the proposed transaction and
related matters. Shareholders are urged to read the definitive proxy statement
carefully, as it contains important information that shareholders should
consider before making a decision about the proposed transaction. In addition
to receiving the definitive proxy statement from Coeur by mail, shareholders
may also obtain the definitive proxy statement, as well as other filings
containing information about Coeur, without charge, from the SEC's website
( and the Canadian securities regulators' website (
or, without charge, from Coeur. Coeur and its executive officers and directors
may be deemed to be participants in the solicitation of proxies from Coeur's
shareholders with respect to the proposed transaction. Information regarding
any interests that Coeur's executive officers and directors may have in the
proposed transaction is set forth in the definitive proxy statement. The Coeur
shares to be issued in the proposed transaction have not been and will not be
registered under the Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an applicable
exemption from registration requirements. Coeur intends to issue such Coeur
shares pursuant to the exemption from registration set forth in Section
3(a)(10) of the Securities Act.

For further information:

For further information: Coeur d'Alene Mines Corporation Tony Ebersole,
208-665-0777 Director - Investor Relations or Mitchell J. Krebs, 888-545-1138
Senior Vice President - Corporate Development

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