Tara Gold Enters Option Agreement to Sell La Currita for Cash Payments and Net Smelter Return Royalty
9:01a ET November 18, 2008 (Market Wire)
Under terms of the agreement with Tara Gold, Coeur will make an initial payment to Tara Gold, and subsequent optional payments over the next two years totaling US $3.0 million to gain 100% interest in the La Currita property. Tara will retain a sliding scale net smelter return (NSR) royalty based on the market price of silver.
The La Currita property borders the southeast end of Coeur's Guadalupe deposit in the south end of the Palmarejo District, where exploration drilling has been expanding and defining additional mineral resource. No exploration work has been conducted at La Currita since October 2007. A mineralized structure is exposed on surface for about 1 kilometer, with surface samples returning up to 0.146 ounces per ton gold (5 g/t) and 17.5 ounces per ton silver (600 g/t).
Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "We are extremely pleased to allow a team with the quality of Coeur D' Alene's to exploit the full potential of La Currita. With a modern plant scheduled for completion in the 1st quarter of 2009, we could not find a better scenario to add value for Tara Gold shareholders."
Years Teach Us, Which Days Never Knew
