Surface sampling results from mineralized outcrops indicate continued high silver values in addition to a significant increase in base metal content (up to 14.9% lead and 1.8% zinc) 1.5 km to 3 km south of discovery hole SE-14-01.
Assays from a total of 23 rock samples selected 1.5 km to 3 km south of Silver Eagle ranged from 6.5 g/t Ag to 549 g/t Ag, and from 0.15% Pb to 14.9% Pb. Average values from these selected dump, grab and channel samples were 117 g/t Ag and 4.9% Pb.
Silver miner Coeur authorizes 1-for-10 reverse split of all common stock
To cement the silver miner's compliance with NYSE regulations, the shareholders of Coeur d'Alene Mines voted to authorize a reverse split to help maintain the company's price above $1 per share.
Author: Dorothy Kosich Posted: Tuesday , 19 May 2009
RENO, NV -
The board of directors for Coeur d'Alene Mines has authorized a one-for-ten reverse split of all its common stock, effective May 26th.
The Idaho-based silver miner's common stock will be reduced from 686,320,000 shares to 68,632,000 post-split.
Among the aims of the split is to meet the NYSE's minimum share price criteria because over a 30-day trading period, the value of Coeur stock was less than $1 per share.
In a proxy recently presented at Coeur's annual general meeting, the company said, "In addition to bringing the price of our common stock back above $1, we also believe that the reverse stock split will make our common stock more attractive to a broader range of institutional and other investors, as we have been advised that the current market price of our common stock may affect its acceptability to certain institutional investors, professional investors, and other members of the investing public."
With the reverse stock split, Coeur will reduce its total number of authorized common shares from 750 million shares to 150 million shares.
Meanwhile, Coeur's board noted the proposed change in the number of authorized shares could enable the directors "to render more difficult or discourage an attempt to obtain control of the company, since the additional shares could be issued to purchasers who support our board of directors and are opposed to a takeover." The company said it is not currently aware of any pending or proposed transaction involving a change in control of the company.
In a development unrelated to the stock split, Standard & Poor's Monday placed Coeur on its CreditWatch list with positive implications.
S&P Credit Analysts Sherwin Brandford and Marie Shmaruk said they felt Coeur's "near term operating cash flow generation will likely increase due to the combination of higher metal volumes and continued favorable gold and silver prices."
Nevertheless, the analysts also noted "the company's liquidity position remains somewhat thin because its near-term capital spending plan of approximately $70 million will likely necessitate additional external funding."
"As a result, we expect Coeur d'Alene will seek to raise capital through sale leasebacks, gold leases, and other sources over the next several months, similar to what it accomplished during the past few months, to ensure appropriate funding of its capital spending plan and provide enhanced cushion to its overall liquidity position."
The analysts also gave Coeur a ‘CCC' credit rating.