Coeur d'Alene granted extra time for due diligence in Bolnisi, Palmarejo merger deal

By Lisa Kerner

Charlotte, N.C., June 8 - Bolnisi Gold NL agreed to extend Coeur d'Alene Mines Corp.'s due diligence period by 14 days.

On May 3, the boards of directors of Coeur d'Alene Mines, Bolnisi Gold and Palmarejo Silver and Gold Corp. announced their unanimous approvals of a merger of the three companies, according to a company news release.

Agreements call for Coeur d'Alene to acquire all of the shares of Bolnisi, as well as all of the shares of Palmarejo not owned by Bolnisi.

The transaction is valued at about $1.1 billion and is expected to close in the third quarter of 2007.

Bolnisi shareholders will receive 0.682 of a Coeur d'Alene share, or about $2.76, for each Bolnisi share they own, or may elect to receive Chess Depositary Interests representing Coeur d'Alene shares.

Palmarejo shareholders will receive 2.715 Coeur d'Alene shares, or about $11.00, for each Palmarejo share they own.

Under the agreement, Bolnisi and Palmarejo shareholders will also receive a cash payment equal to $0.003 per Bolnisi share and $0.003 per Palmarejo share. The companies currently own 100% of the Palmarejo Project, a silver project located in Mexico, which Coeur d'Alene plans to leverage.

Coeur d'Alene, a Coeur d'Alene, Idaho-based silver and gold producer, expects to issue a total of 271.3 million new shares.

Bolnisi Gold is a Sydney, Australia-based gold mining and exploration company.

Longueuil, Quebec-based Palmarejo is a silver and gold exploration company with operations in the Temoris District of Chihuahua, Mexico.

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