Coeur Mining Inc.
03/29/2024 | Press release | Distributed by Public on 03/29/2024 04:06
Private Placement - Form 8-K
Item 3.02 Unregistered Sales of Equity Securities.
Pursuant to a privately-negotiated agreement dated March 14, 2024, Coeur Mining, Inc. (the "Company") agreed to exchange approximately $5.9 million aggregate principal amount of its 5.125% Senior Notes due 2029 (the "Senior Notes") for an aggregate of 1,771,651 shares of its common stock, par value $0.01 per share (the "Exchange Shares"). The issuance of the Shares was pursuant to the exemption from the registration requirements afforded by Section 3(a)(9) of the Securities Act of 1933, as amended.
On March 28, 2024, the Company and its subsidiary Coeur Alaska, Inc. ("Coeur Alaska") entered into a settlement agreement to resolve litigation with Maverix Metals Inc. and Maverix Metals (Nevada) Inc. (collectively "Maverix") regarding the terms of a royalty impacting a portion of the Kensington mine property (the "Maverix Litigation"). While Coeur Alaska continued to believe its claims and counterclaims in the matter were valid, it determined that the settlement was appropriate given the inherent uncertainty presented in litigation matters. In consideration for the dismissal of the Maverix Litigation and pursuant to other customary terms of settlement, Coeur Alaska and Maverix agreed to amend the terms of the royalty to decrease the effective rate of the royalty and to eliminate the concept of cost recoupment provided for in the original royalty. The amended royalty now provides that Coeur Alaska pay a net returns royalty on up to two million troy ounces of gold produced from the current boundaries of the Kensington mine at a rate of: (i) 1.25% for production occurring from January 1, 2024 through December 31, 2026 and (ii) 1.5% for production occurring on or after January 1, 2027. The Company also agreed to issue up to 2,455,000 shares of its common stock to an affiliate of Maverix, including common stock having a then-current fair market value of $3.0 million by April 2, 2024 and common stock having a then-current fair market value of $3.75 million by March 28, 2025 (collectively, the "Settlement Shares"), with a cash-settlement of any shortfall in value if all 2,455,000 shares of common stock are issued. The settlement provides that credit for the value of certain portions of equity issued to be credited against the royalty, as amended, as payment in arrears for production prior to January 1, 2024. The issuance of the Settlement Shares is being made pursuant to the exemption from the registration requirements afforded by Section 4(a)(2) of the Securities Act of 1933, as amended.