Most mine shareholders back merger

More than 91 percent of Coeur d’Alene Mines Corp.’s shareholders favor a $1.1 billion merger that will give the company control of a Mexican silver property, according to the votes tallied so far.

A Monday shareholder meeting on the proposed merger was adjourned until 4 p.m. Friday to give shareholders more time to vote. According to the company, votes representing an additional 1.7 percent of the shares are needed to certify the election.

Ownership of the Palmarejo property, about 260 miles south of Chihuahua, Mexico, would nearly double the company’s current annual silver output. It would also give Coeur d’Alene Mines its first property in Mexico.

The Palmarejo Mine is expected to open in late 2008. According to company estimates, it would produce 12 million ounces of silver annually.

The $1.1 billion merger is largely a stock transaction. Coeur d’Alene Mines would acquire all of the outstanding shares of the two other firms, Bolnisi Gold NL, of Australia, and Montreal’s Palmarejo Silver and Gold Corp.