Bolnisi extends due diligence period for Coeur d'Alene a second time

By Lisa Kerner

Charlotte, N.C., June 22 - Bolnisi Gold NL extended Coeur d'Alene Mines Corp.'s due diligence period to July 3. On June 8, the companies announced the due diligence period was extended by 14 days to June 22.

No reason was given for the extension in a company news release.

The boards of directors of Coeur d'Alene Mines, Bolnisi Gold and Palmarejo Silver and Gold Corp. unanimously approved a merger of the three companies in a transaction valued at $1.1 billion. Under the companies' agreement, Coeur d'Alene will acquire all of the shares of Bolnisi, as well as all of the shares of Palmarejo not owned by Bolnisi.

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.

Bolnisi and Palmarejo shareholders will also receive a cash payment equal to $0.003 per Bolnisi share and $0.003 per Palmarejo share.

The transaction is expected to close in the third quarter of 2007.

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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