Coeur d'Alene Mines, Bolnisi and Palmarejo expect to complete merger in fourth quarter

By Devika Patel

Knoxville, Tenn., July 3 - Coeur d'Alene Mines Corp., Bolnisi Gold NL and Palmarejo Silver and Gold Corp. announced that Coeur has completed its due diligence under the terms of the merger implementation agreement with Bolnisi and that the companies expect to complete the their three-way combination in the fourth quarter of 2007.

The joint operating committee has completed its work and a project development committee responsible for daily management of the mine's construction has been established. The companies have agreed to appoint an interim project manager to be a senior Coeur executive.

The project development committee will complete a pre-feasibility study by the end of August.

The total estimated capital costs to bring the Palmarejo project into production will be approximately $200 million and initial production from open pit mining is expected in the fourth quarter of 2008.

The companies expect to begin mailing information to Coeur, Bolnisi and Palmarejo shareholders in September. All three companies' shareholder meetings are expected to be held in October.

Coeur d'Alene is a Coeur d'Alene, Idaho-based silver and gold producer. 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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