CdA Mines courts B.C. firm
Coeur d’Alene Mines Corp. made an offer Thursday to buy Wheaton River Minerals Ltd., a Canadian mining company, for $1.8 billion in stock and cash.
“I want to be very clear that this is a friendly offer,” Dennis Wheeler, Coeur d’Alene Mines’ chairman, wrote in a letter to Ian Telfer, Wheaton River’s chairman.
The unsolicited offer comes as Wheaton River’s shareholders are considering another offer.
On June 8, Wheaton’s shareholders are scheduled to vote on an all-stock acquisition bid from Iamgold Corp., a Toronto mining company. Last week, Reuters News Service reported that the share prices of both companies had dropped sharply since the proposed purchase was announced, leading to speculation that a third party might try to scoop up either — or both — on the cheap.
“We think our proposal is a better offer,” said Jim Sabala, Coeur d’Alene Mines’s chief financial officer.
Coeur d’Alene Mines is offering $205 million in cash, with the remaining amount in stock. A letter containing the details of the offer was delivered Thursday. Wheaton River’s board of directors has not yet responded, Sabala said. A Denver company, Golden Star Resources, also made a move on Thursday, offering to buy Iamgold Corp.
Sabala said Wheaton River would complement Coeur d’Alene Mines’ operations, giving the companies a strong base in both North and South America.
Wheaton River reported first quarter earnings of $34 million, describing itself as “one of the fastest growing and most profitable gold operations in the world.” The company is based in Vancouver, B.C., and also produces silver and copper.
Coeur d’Alene Mines lost $3 million during the first quarter. The company, based in Coeur d’Alene, has silver mines in Idaho, Nevada and Latin America. It also produces gold.
A merger of Coeur d’Alene Mines and Wheaton River would create North America’s fourth-largest precious metals company, Sabala said.
For a merger to take place, shareholders of both Coeur d’Alene Mines and Wheaton River would have to approve the deal.