UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13
or 15 (d) of the
Securities and Exchange Act of 1934
Date of Report (Date
of earliest event reported): March 28, 2006
COEUR D’ALENE MINES CORPORATION
|
| (Exact name of Registrant as specified in its charter) |
| Idaho |
1-8641 |
84-0109423 |
| (State or Other Jurisdiction of |
(Commission File Number) |
(I.R.S. Employer |
| Incorporation) |
|
Identification No.) |
| 400 Coeur d’Alene Mines Bldg., 505 Front Avenue, |
83814 |
| Coeur d’Alene, Idaho |
(Zip Code) |
| (Address of Principal Executive Office) |
Registrant’s
telephone number, including area code: (208) 667-3511
Not Applicable
(Former
name or former address, if changed since last report)
Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
| [_] |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [_] |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [_] |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
| [_] |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
Item 1.01 Entry into a
Material Definitive Agreement.
On
March 28, 2006, CDE Australia Pty Ltd. (“CDEA”), a wholly-owned subsidiary of
Coeur d’Alene Mines Corporation (the “Company”), entered into an amendment
(the “Amendment”) to the Silver Sale and Purchase Agreement, dated April 7,
2005, (the “Agreement”) between CDEA and Cobar Operations Pty Limited
(“Cobar”), a wholly-owned subsidiary of CBH Resources Ltd (“CBH”), an
Australian mining company. Entry into the original Agreement was reported by the Company
in its Form 8-K dated April 7, 2005. Cobar owns and operates the Endeavor Mine in
Australia. Pursuant to the Agreement, CDEA agreed to buy, and Cobar agreed to sell, the
silver contained in ore to be mined at the Endeavor Mine for a total of approximately US$38.5 million.
The
modifications to the original Agreement effected by the Amendment are as follows:
| |
• |
CDE
Australia Pty Ltd (“CDEA”) will receive a maximum of 20.0 million ounces of
payable silver from the Endeavor Mine, an increase from 17.7 million ounces. |
| |
• |
The
50/50 sharing in silver prices above US$5.23 per ounce beginning in June 2007 will be amended
as follows: |
| |
• |
The
silver price sharing will be altered so that it will commence when a total of 2,073,000
ounces of payable silver has been delivered to CDEA or June 2007, whichever occurs later;
and |
| |
• |
The
threshold silver price for price participation will be increased to US$7.00 per ounce
from US$5.23 per ounce. |
In return, CDEA will make available a
loan facility of A$15 million to Cobar on the basis of a parent company guarantee from
CBH. The loan will bear interest at the fixed rate of 7.75% and is repayable out of the
remaining A$30 million still to be paid by CDEA under the terms of the original Agreement.
Cobar will not be entitled to draw
down the loan facility unless (a) it has received unconditional commitments from
underwriters or purchasers for subscriptions for CBH common shares aggregating A$19.5
million; (b) an independent report to be prepared on Cobar’s operating plan
confirms its technical feasibility; and (c) CDEA is satisfied that the Endeavor Mine is
operating substantially in accordance with Cobar’s operating plan.
Finally, the payment by CDEA of the
remaining A$15 million from the original transaction will be made once (a) the pastefill
plant at the Endeavor Mine operates to pre-agreed criteria for 30 consecutive days; and
(b) the mill operates in the ordinary course for three consecutive months at an average
rate equivalent to 1.2 million tonnes per annum and the recovered silver from operations
is equal to or exceeds the projected number of ounces.
SIGNATURES
Pursuant
to the requirements of the Securities 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: March 28, 2006 |
By: /s/ Dennis E. Wheeler |
|
Dennis E. Wheeler |
|
Chief Executive Officer |