SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 4, 1996
COEUR D'ALENE MINES CORPORATION
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(Exact name of registrant as specified in its charter)
Idaho 1-8641 82-0109423
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification
Number)
505 Front Avenue
Coeur d'Alene, Idaho 83814
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(Address of principal Executive Offices) (Zip Code)
(208) 667-3511
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Registrant's telephone number, including area code:
Not Applicable
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(Former name or former address, if changed since last report)
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On September 4, 1996, Coeur d'Alene Mines Corporation ("Coeur" or the
"Company") purchased from Compania Minera El Bronce, a Chilean Corporation
("CMEB") the remaining 49% of the shares of Compania Minera CDE El Bronce, a
Chilean Corporation ("CDE El Bronce"), as a result of which the Company
increased its ownership interest of CDE El Bronce to 100%. Pursuant to the
Agreement For The Purchase and Sale Of Shares dated August 30, 1996, (the
"Agreement"), Coeur's purchase of the additional interest required the payment
of $10,500,000 cash, prepayment of the remainder of the exercise price of the
option described below in the approximate amount of $3,800,000, and net
smelter return royalty of 3% to be paid quarterly, commencing on January 1,
1997. Coeur used cash on hand to fund the cash payments required to effect the
acquisition, which was accounted for as a purchase. A copy of the Agreement is
filed as an exhibit hereto.
As previously reported by the Company, it entered into an agreement with
CMEB pursuant to which Coeur acquired operating control and 51% interest in
any operating profits and an option exercisable through July 1997 to also
purchase from CMEB a 51% equity interest in the producing El Bronce Mine. The
El Bronce Mine is an underground, gold-silver mine located on approximately
34,000 acres in the Andean foothills about 90 miles north of Santiago, Chile.
A copy of the Option Agreement, dated October 24, 1994, between CMEB and CDE
Chilean Mining Corporation, a subsidiary of the Company, was filed as Exhibit
10(qq) to the Company's Annual Report on Form 10-K for the year ended December
31, 1994. Pursuant to that agreement, the Company made option payments
totaling $27.5 million to CMEB and expended $5.2 million through August 1996
for exploration and mine development activities.
Since October 1994, when the Company assumed operating control of the El
Bronce Mine, the Company has effected mining and production improvements to
the mine which have resulted in an increase in the annual production level
from approximately 33,000 ounces to approximately 60,000 ounces per year. The
Company plans to maintain the 500 to 600 tons per day milling rate at the
mine, improve the mining method to increase ore reserves and to restructure
the work force. In addition, the Company is conducting exploratory activities
at three main exploration sites surrounding the mine and is currently
conducting a feasibility study which is analyzing the ability of the mine to
produce in excess of 60,000 ounces annually.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
(a) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED. The financial
statements of CDE El Bronce required to be filed for the periods
specified in Rule 3-05(b) of the Regulation S-X will be filed by an
amendment to the Form 8-K filed on or before November 18, 1996.
(i.e.. within 60 days after September 19, 1996.)
(b) PRO FORMA FINANCIAL INFORMATION. The pro forma financial information
relating to the transaction reported under Item 2 of this Form 8-K
that would be required pursuant to Item 11 of Regulation S-X will be
filed by an amendment to this Form 8-K filed on or before November
18, 1996 (i.e. within 60 days after September 19, 1996.)
(c) EXHIBITS. The following exhibits are filed herewith:
10(a) Agreement for the Purchase and Sale of Shares, dated
August 30, 1996, by Compania Minera El Bronce to CDE
Chilean Mining Corporation and Coeur d'Alene Mines
Corporation.
10(b) Amendment, dated August 30, 1996, to Purchase and Sale,
Cancellation and Receipt of Payment of Purchase Sale
Installments and Release of Mortgage, Chattel Mortgages
and Prohibitions between Compania Minera El Bronce and
Compania Minera CDE El Bronce.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COEUR D'ALENE MINES CORPORATION
(Registrant)
Dated: November 1, 1996 By:/s/JAMES A. SABALA
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James A. Sabala
Senior Vice President and
Chief Financial Officer
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