e424b5
CALCULATION OF REGISTRATION FEE
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Title of each class of |
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Proposed maximum |
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Amount of |
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securities to be registered |
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aggregate offering price(1) |
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registration fee(2) |
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Common Stock |
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$5,536,234.90 |
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$394.74 |
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(1) |
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The proposed maximum aggregate offering price has been estimated solely for the purpose of
calculating the registration fee pursuant to Rule 457(c) based on the average of the high and low
prices reported for shares of common stock as reported by the New York Stock Exchange on June 29,
2010. |
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(2) |
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The filing fee is calculated pursuant to Rule 457(r) of the Securities Act of 1933. |
As filed
pursuant to Rule 424(b)(5) under the Securities Act of 1933 in connection with Registration No. 333-161617
Prospectus supplement to prospectus dated August 31, 2009
Coeur dAlene Mines Corporation
348,410 Shares
Common Stock
Coeur dAlene Mines Corporation is offering 348,410 shares of our common stock. We are issuing the
shares of common stock offered by this prospectus supplement in connection with an installment
payment in cash and common stock of principal and interest on our Senior Term Notes due December
31, 2012, which we refer to herein as the 2012 notes, as contemplated by the terms of the 2012
notes.
Our common stock is listed on the New York Stock Exchange under the symbol CDE. The closing sale
price of our common stock on the New York Stock Exchange on
June 29, 2010 was $15.74 per share.
Investing
in the common stock involves risks. See Risk Factors beginning on page S-3.
Neither the Securities and Exchange Commission nor any state securities commission has approved or
disapproved of these securities or passed upon the adequacy or accuracy of this prospectus
supplement. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is June 30, 2010.
S-i
TABLE OF CONTENTS
Prospectus Supplement
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A Note About Forward-Looking Statements |
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S-1 |
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About This Prospectus Supplement |
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S-1 |
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Prospectus Supplement Summary |
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S-2 |
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Risk Factors |
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S-3 |
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Use of Proceeds |
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S-5 |
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Description of Common Stock |
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S-6 |
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Certain United States Federal Income Tax Consequences |
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S-7 |
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Plan of Distribution |
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S-12 |
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Legal Matters |
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S-13 |
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Experts |
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S-13 |
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Incorporation of Certain Information by Reference |
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S-13 |
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Prospectus
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A Note About Forward-Looking Statements |
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1 |
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About This Prospectus |
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Where You Can Find More Information |
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Incorporation of Certain Documents by Reference |
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The Company |
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Use of Proceeds |
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Ratio of Earnings to Fixed Charges |
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Description of Capital Stock |
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Description of the Debt Securities |
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Description of Warrants |
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Description of Other Securities |
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Plan of Distribution |
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Legal Matters |
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Experts |
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You should rely only on the information contained or incorporated by reference in this prospectus
supplement and the accompanying prospectus. We have not authorized anyone to provide you with
different information. We are not making an offer of these securities in any state where the offer
is not permitted. You should not assume that the information provided by this prospectus
supplement and the accompanying prospectus is accurate as of any date other than the respective
dates on the front of these documents.
S-ii
A NOTE ABOUT FORWARD-LOOKING STATEMENTS
Some of the information included in this prospectus supplement and the accompanying prospectus
and other materials filed or to be filed by us with the Securities and Exchange Commission (the
SEC), as well as information included in oral statements or other written statements made or to
be made by us or our representatives, contains or may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section
21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These statements can
be identified by the fact that they do not relate strictly to historical or current facts and may
include the words may, could, should, would, believe, expect, anticipate, estimate,
intend, plan or other words or expressions of similar meaning. We have based these
forward-looking statements on our current expectations about future events. The forward-looking
statements include statements that reflect managements beliefs, plans, objectives, goals,
expectations, anticipations and intentions with respect to our financial condition, results of
operations, future performance and business, including statements relating to our business
strategy, expected production volumes and current and future development plans.
Oral or written forward-looking statements are included in this prospectus supplement and the
accompanying prospectus and other materials filed or to be filed by us with the SEC (as well as
information included in oral statements or other written statements made or to be made by us or our
representatives). Although we believe that the expectations reflected in all of these
forward-looking statements are and will be reasonable at the time made, any or all of the
forward-looking statements in this prospectus supplement, the accompanying prospectus, our Annual
Report on Form 10-K and in any other public statements may prove to be incorrect, whether as a
result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties
such as future gold and silver prices, costs, ore grades, estimation of gold and silver reserves,
mining and processing conditions, construction schedules, currency exchange rates, and the
completion or updating of mining feasibility studies, changes that could result from future
acquisitions of new mining properties or businesses, the risks and hazards inherent in the mining
business (including environmental hazards, industrial accidents, weather or geologically related
conditions), regulatory and permitting matters, and risks inherent in the ownership and operation
of or investment in mining properties or businesses in foreign countries. Many of these and other
factors discussed or incorporated by reference in this prospectus supplement and the accompanying
prospectus, some of which are beyond our control, will be important in determining our future
performance and liquidity. Consequently, actual results may differ materially from those that
might be anticipated from forward-looking statements. In light of these and other uncertainties,
you should not regard a forward-looking statement that we might make as a representation by us that
our plans and objectives will be achieved, and you should not place undue reliance on such
forward-looking statements.
We undertake no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. However, we invite your
attention to any further disclosures made on related subjects in our subsequent reports filed with
the SEC on Forms 10-K, 10-Q and 8-K.
ABOUT THIS PROSPECTUS SUPPLEMENT
This document is in two parts. The first is this prospectus supplement, which describes the
specific terms of this offering. The second part, the accompanying prospectus, gives more general
information, some of which may not apply to this offering and some of which has been replaced or
superseded by information in this prospectus supplement or in the documents incorporated by
reference herein.
If information in this prospectus supplement differs from information in the accompanying
prospectus, you should rely on the information in this prospectus supplement.
S-1
PROSPECTUS SUPPLEMENT SUMMARY
This summary is not complete and may not contain all of the information that may be important
to you. You should read the entire prospectus supplement and accompanying prospectus carefully, as
well as the documents incorporated by reference, before making an investment decision. Unless
otherwise indicated, the words we, our, us, Coeur and the Company refer to Coeur dAlene
Mines Corporation. In this prospectus supplement, we refer to the beneficial owners of the 2012
notes as of June 15, 2010, the record date for the June 30, 2010 installment date, as the record
date noteholders. The following summary should be read together with the information contained in
other parts of this prospectus supplement and the accompanying prospectus and is not intended to be
complete. For a more detailed description, see Description of Capital StockCommon Stock in the
accompanying prospectus.
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Issuer
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Coeur dAlene Mines Corporation, an Idaho corporation. |
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Common Shares Offered
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348,410 shares of common stock. |
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Use of Proceeds
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We are issuing the shares of common stock offered by this prospectus supplement in connection with an installment payment in cash and common stock as
contemplated by the terms of our 2012 notes. Accordingly, we will receive no proceeds from this offering of shares of our common stock. |
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New York Stock Exchange Symbol
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CDE |
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Toronto Stock Exchange Symbol
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CDM |
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Australian Stock Exchange Symbol
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CXC |
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Risk Factors
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You should carefully consider the information set forth under the heading Risk Factors in this prospectus supplement, our Annual Report on Form 10-K
for the fiscal year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010, as well as the other
information included in or incorporated by reference into this prospectus supplement, before deciding whether to invest in the common stock. |
S-2
RISK FACTORS
An investment in our common stock involves certain risks. You should carefully consider the
risks described below and all other information set forth or incorporated by reference in this
prospectus supplement and accompanying prospectus before making an investment decision. If any of
the following risks, as well as other risks and uncertainties that are not yet identified or that
we currently think are immaterial, actually occur, our business, financial condition and results of
operations could be materially and adversely affected. In that event, the trading price of our
shares of common stock could decline, and you may lose part or all of your investment. For a
detailed discussion of these and other risks, see the sections entitled Risk Factors in our
Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2010, which are incorporated by reference into this
prospectus supplement.
Risks Related to This Offering
The market price of our common stock has been volatile and may decline.
The market price of our common stock has been volatile and may decline in the future. The
high and low closing sale prices of our common stock on the New York Stock Exchange, adjusted for
our reverse stock split effective May 26, 2009, were $49.40 and $32.50 in 2007; $51.60 and $3.60 in
2008; $24.29 and $5.50 in 2009 and $20.39 and $13.41 for the first six months of 2010. The closing
sale price on the New York Stock Exchange on June 29, 2010, was
$15.74 per share.
The market price of our common stock historically has fluctuated widely and been affected by
our operating results and by many factors beyond our control. These factors include:
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market prices of silver and gold; |
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general stock market conditions; |
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interest rates; |
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expectations regarding inflation; |
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currency values; and |
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global and regional political and economic conditions and other factors. |
In addition, stock markets, including the New York Stock Exchange, generally experience price
and trading fluctuations, which result in volatility in the market price of securities that may be
unrelated or disproportionate to changes in operating performance. These broad market fluctuations
may affect adversely the market prices of our common stock.
Sales of a significant number of shares of our common stock in the public markets, or the
perception of these sales, could depress the market price of our common stock.
Sales of a substantial number of shares of our common stock or other equity-related securities
in the public markets, including the vesting of restricted stock, could depress the market price of
our common stock and impair our ability to raise capital through the sale of additional equity
securities. We cannot predict the effect that future sales of our common stock or other
equity-related securities would have on the market price of our common stock.
Issuance of common stock will dilute the ownership interest of existing stockholders.
The issuance of common stock will dilute the ownership interests of existing stockholders.
Any sales in the public market of shares of our common stock could adversely affect prevailing
market prices of shares of our common stock.
S-3
We have the ability to issue additional equity securities, which would lead to dilution of our
issued and outstanding common stock and may materially and adversely affect the price of our common
stock.
The issuance of additional equity securities or securities convertible into equity securities
would result in dilution of existing shareholders equity interests in the Company. We are
authorized to issue, without shareholder approval, 10,000,000 shares of preferred stock in one or
more series, to establish the number of shares to be included in each series and to fix the
designation, powers, preferences and relative participating, optional, conversion and other special
rights of the shares of each series as well as the qualifications, limitations or restrictions on
each series, including but not limited to the fixing or alteration of the dividend rights, dividend
rate or rates, conversion rights, voting rights, rights and terms of redemption, the redemption
price or prices and the liquidation preferences of any wholly unissued series of shares of
preferred stock, or any or all of them. Any series of preferred stock could contain dividend
rights, conversion rights, voting rights, terms of redemption, redemption prices, liquidation
preferences or other rights superior to the rights of holders of our common stock. Our Board of
Directors has no present intention of issuing any preferred stock, but reserves the right to do so
in the future. We are also authorized to issue, without shareholder approval, securities
convertible into either shares of common stock or preferred stock. If we issue additional equity
securities, the price of our common stock may be materially and adversely affected.
Our future operating performance may not generate cash flows sufficient to meet our debt payment
obligations, and our indebtedness could negatively affect holders of our common stock.
As of December 31, 2009, we had a total of approximately $363.6 million of outstanding
indebtedness. Our ability to make scheduled debt payments on our outstanding indebtedness will
depend on our future operating performance and cash flow. Our operating performance and cash flow,
in part, are subject to economic factors beyond our control, including the market prices of silver
and gold. We may not be able to generate enough cash flow to meet our obligations and commitments.
If we cannot generate sufficient cash flow from operations to service our debt, we may need to
further refinance our debt, dispose of assets or issue equity to obtain the necessary funds. We
cannot predict whether we will be able to refinance our debt, issue equity or dispose of assets to
raise funds on a timely basis or on satisfactory terms.
Our indebtedness could negatively affect holders of our common stock in many ways, including
by:
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reducing funds available to support our business operations and for other corporate
purposes because portions of our cash flow from operations must be dedicated to the
payment of principal and interest on our debt; |
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impairing our ability to obtain additional financing for working capital, capital
expenditures, acquisitions or general corporate purposes; |
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making us more vulnerable to a downturn in general economic conditions or in our
business; and |
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negatively affecting our ability to pay interest and principal on our debt. |
S-4
USE OF PROCEEDS
We are issuing the shares of common stock offered by this prospectus supplement in connection
with an installment payment in cash and common stock as contemplated by the terms of the 2012
notes. Accordingly, we will receive no proceeds from this offering of shares of our common stock.
S-5
DESCRIPTION OF COMMON STOCK
This summary of our common stock may not contain all of the information that is important to
you, and you should read our current Articles of Incorporation and current By-laws for additional
information. Copies of these documents are filed with the SEC and incorporated by reference in
this prospectus supplement. The following description is qualified in its entirety by reference to
each of the charter documents and to the applicable provisions of the Idaho Business Corporation
Act.
We are issuing the shares of common stock offered by this prospectus supplement in connection
with an installment payment in cash and common stock as contemplated by the terms of the 2012
notes. The 2012 notes require quarterly installment payments, payable in cash, shares of our
common stock or a combination of cash and shares of our common stock, at our election.
We are authorized to issue up to 150,000,000 shares of common stock, par value $0.01 per
share. The holders of shares of common stock are entitled to one vote for each share held of
record on each matter submitted to a vote of shareholders. Holders of shares of common stock may
not cumulate their votes in elections of directors. Subject to preferences that may be applicable
to any shares of preferred stock outstanding at the time, holders of shares of common stock are
entitled to receive ratably such dividends as may be declared by the Board of Directors out of
funds legally available therefor and, in the event of our liquidation, dissolution or winding up,
are entitled to share ratably in all assets remaining after payment of liabilities. Holders of
shares of common stock have no preemptive rights and have no rights to convert their common stock
into any other security. The outstanding shares of common stock are fully paid and non-assessable.
Our Articles of Incorporation include a fair price provision, applicable to some business
combination transactions in which we may be involved. The provision requires that an interested
shareholder (defined to mean a beneficial holder of 10% or more of our outstanding shares of common
stock) not engage in specified transactions (e.g., mergers, sales of assets, dissolution and
liquidation) unless one of three conditions is met:
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a majority of the directors who are unaffiliated with the interested shareholder and
were directors before the interested shareholder became an interested shareholder
approve the transaction; |
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holders of 80% or more of the outstanding shares of common stock approve the
transaction; or |
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the shareholders are all paid a fair price, i.e., generally the higher of the fair
market value of the shares or the same price as the price paid to shareholders in the
transaction in which the interested shareholder acquired its block. |
By discouraging some types of hostile takeover bids, the fair price provision may tend to
insulate our current management against the possibility of removal. We are not aware of any person
or entity proposing or contemplating such a transaction.
The transfer agent and registrar for our common stock, which is listed on the New York Stock
Exchange and the Toronto Stock Exchange, is Mellon Investor Services LLC. As of June 29, 2010, we
had 88,940,467 shares of common stock issued and outstanding.
S-6
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES
The following is a summary of certain United States federal income tax considerations relating
to the acquisition, ownership and disposition of shares of our common stock, but does not purport
to be a complete analysis of all the potential tax considerations relating thereto. This summary
is based upon the provisions of the Internal Revenue Code of 1986, as amended (the Code),
Treasury regulations promulgated pursuant to the Code, rulings and judicial decisions as of the
date hereof. These authorities may be changed, perhaps retroactively, so as to result in United
States federal income tax consequences different from those set forth below. We have not sought
any ruling from the Internal Revenue Service (IRS) or an opinion of counsel with respect to the
statements made and the conclusions reached in the following summary, and there can be no assurance
that the IRS will agree with such statements and conclusions.
This summary assumes that all shares of our common stock are held as capital assets for United
States federal income tax purposes. This summary does not address the tax considerations arising
under the laws of any foreign, state or local jurisdiction. In addition, this discussion does not
address tax considerations that may be relevant to holders in light of their particular
circumstances, or to holders that may be subject to special tax rules, including, without
limitation:
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holders subject to the alternative minimum tax; |
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banks; |
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tax-exempt organizations; |
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insurance companies; |
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dealers in securities or currencies; |
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traders in securities that elect to use a mark-to-market method of accounting for
their securities holdings; |
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financial institutions; |
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U.S. holders (as defined below) whose functional currency is not the U.S. dollar; |
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persons that will hold our common stock as a position in a hedging transaction,
straddle, conversion transaction or other risk reduction transaction; |
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persons deemed to sell our common stock under the constructive sale provisions of
the Code; or |
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persons subject to the Code provisions applicable to certain United States
expatriates. |
If a partnership (including, for purposes of this discussion, any entity or arrangement
treated as a partnership for U.S. federal income tax purposes) holds our common stock, the tax
treatment of a partner or other owner in the partnership will generally depend upon the status of
the partner and the activities of the partnership. This summary does not address the particular
tax consequences of holding our common stock through a partnership. If you are a partner of a
partnership holding our common stock, you should consult your tax advisor.
THIS SUMMARY OF CERTAIN UNITED STATES FEDERAL TAX CONSIDERATIONS IS FOR GENERAL INFORMATION
ONLY AND IS NOT TAX ADVICE. YOU ARE URGED TO CONSULT YOUR OWN TAX ADVISOR WITH RESPECT TO THE
APPLICATION OF UNITED STATES FEDERAL INCOME TAX LAWS TO YOUR PARTICULAR SITUATION AS WELL AS ANY
TAX CONSEQUENCES ARISING UNDER THE UNITED STATES FEDERAL ESTATE OR GIFT TAX RULES OR UNDER THE LAWS
OF ANY STATE, LOCAL, FOREIGN OR OTHER TAXING JURISDICTION OR UNDER ANY APPLICABLE TAX TREATY.
S-7
Consequences to U.S. Holders
The following is a summary of the material United States federal income tax consequences that
will apply to you if you are a U.S. holder of our common stock. Certain consequences to non-U.S.
holders are described under Consequences to Non-U.S. Holders below. U.S. holder means a
beneficial owner of our common stock that is for U.S. federal income tax purposes:
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an individual citizen or resident of the United States; |
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a corporation created or organized in or under the laws of the United States or any
political subdivision of the United States; |
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an estate the income of which is subject to United States federal income taxation
regardless of its source; or |
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a trust (1) if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more United States persons
have the authority to control all substantial decisions of the trust or (2) that has a
valid election in effect under applicable Treasury Regulations to be treated as a
United States person. |
Receipt of Common Stock in Connection with an Installment Payment Pursuant to the 2012 Notes.
We are issuing the shares of common stock offered by this prospectus supplement in connection with
an installment payment in cash and common stock as contemplated by the terms of the 2012 Notes. To
the extent that such shares are issued on account of stated interest on the 2012 Notes, the fair
market value of such common stock, together with the payment of cash, will be taxed as ordinary
interest income at the time it is paid or accrues in accordance with the holders regular method of
accounting for tax purposes. To the extent that such shares and cash are issued as a payment on
the notes (other than the payments of stated interest), the holders tax basis in the notes is
decreased by the amount of such payment and any amount in excess of tax basis is treated as gain.
Holders should consult their own tax advisors regarding the possibility of treating the issuance of
shares of common stock in connection with an installment payment in cash and common stock on the
2012 notes (other than payments attributable to stated interest) as recapitalization for U.S.
federal income tax purposes and regarding the appropriate allocation of stock and cash payments
between interest and principal.
Dividends on Common Stock
If we make a distribution of cash or other property (other than certain pro rata distributions
of our common stock) in respect of shares of our common stock that you hold, the distribution will
be treated as a dividend, taxable to you as ordinary income, to the extent it is paid from our
current or accumulated earnings and profits. If the distribution exceeds our current and
accumulated earnings and profits, the excess will be treated first as a tax-free return of your
investment up to your adjusted tax basis in such common stock, and any remaining excess will be
treated as capital gain. If you are an individual, dividends received by you generally will be
subject to a reduced maximum tax rate of 15% for tax years beginning on or before December 31,
2010, after which the rate applicable to dividends is scheduled to return to the tax rate generally
applicable to ordinary income. The rate reduction will not apply to dividends received to the
extent that the U.S. holder elects to treat dividends as investment income, which may be offset
by investment expense. Furthermore, the rate reduction also will not apply to dividends that are
paid to a U.S. holder with respect to shares of our common stock that are held by such holder for
less than 61 days during the 121 day period beginning on the date that is 60 days before the date
on which the shares of our common stock became ex-dividend with respect to such dividend. If you
are a U.S. corporation, you may be able to claim, in certain circumstances, a deduction for a
portion of any distribution received from us that is considered a dividend.
Sale or Other Disposition of Common Stock
You will generally recognize capital gain or loss on a sale or other disposition of common
stock. Your gain or loss will equal the difference between the proceeds you received and your
adjusted tax basis in the stock. The
S-8
proceeds received will include the amount of any cash and the fair market value of any other
property received for the stock. In general, if you are an individual and your holding period for
the stock is more than one year at the time of the disposition, such capital gain will generally be
subject to tax at lower rates than those applicable to ordinary income. Your ability to deduct
capital losses may be limited.
Information Reporting and Backup Withholding
In general, information reporting requirements will apply to certain payments on our common
stock and the proceeds of sale of our common stock unless you are an exempt recipient (such as a
corporation). A backup withholding tax at the applicable rate will apply to such payments if you
fail to provide your taxpayer identification number or certification of exempt status or have been
notified by the IRS that you are subject to backup withholding.
Any amounts withheld under the backup withholding rules will generally be allowed as a refund
or a credit against your United States federal income tax liability provided the required
information is furnished to the IRS.
Consequences to Non-U.S. Holders
The following is a summary of the material United States federal income and estate tax
consequences that will apply to you if you are a non-U.S holder of our common stock. The term
non-U.S. holder means a beneficial owner of shares of our common stock that is neither a U.S.
holder nor a partnership.
Special rules may apply to certain non-U.S. holders such as controlled foreign corporations
and passive foreign investment companies. Such entities should consult their own tax advisors to
determine the United States federal, state, local and other tax consequences that may be relevant
to them.
Receipt of Common Stock in Connection with an Installment Payment Pursuant to the 2012 Notes.
We are issuing the shares of common stock offered by this prospectus supplement in connection with
an installment payment in cash and common stock as contemplated by the terms of the 2012 Notes. To
the extent that such shares are issued on account of stated interest on the 2012 Notes, the fair
market value of such common stock, together with the payment of cash, is treated as ordinary
interest income. To the extent that such shares and cash are issued as a payment on the notes
(other than the payments of stated interest), the holders tax basis in the notes is decreased by
the amount of such payment and any amount in excess of tax basis is treated as gain. Non-U.S.
Holders should consult their own tax advisors regarding the possibility of treating the issuance of
shares of common stock in connection with an installment payment in cash and common stock on the
2012 notes (other than payments attributable to stated interest) as recapitalization for U.S.
federal income tax purposes and regarding the appropriate allocation of stock and cash payments
between interest and principal. Non-U.S. Holders should review the discussion in the prospectus
supplement, dated February 5, 2010, to the accompanying prospectus under the caption Certain
United States Federal Income Tax Consequences regarding the federal income tax consequences of the
receipt of interest and recognition of gain with respect to the Notes.
Sale, Exchange or Disposition of Common Stock
You generally will not be subject to United States federal income taxation on the gain
realized upon the sale, exchange or other taxable disposition of shares of our common stock unless:
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that gain is effectively connected with your conduct of a trade or business in the
United States; |
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you are an individual who is present in the United States for 183 days or more in
the taxable year of that disposition, and certain other conditions are met; or |
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we are, or have, at any time during a prescribed time period, been a United States
real property holding corporation (USRPHC) and the rules of the Foreign Investment in
Real Property Tax Act, referred to as FIRPTA (described below), apply to your
disposition of common stock. |
S-9
A holder described in the first bullet point above will be required to pay United States
federal income tax on the net gain derived from the sale, and, if such holder is a foreign
corporation, it may also be required to pay a branch profits tax at a 30% rate or a lower rate if
so specified by an applicable income tax treaty. A holder described in the second bullet point
above will be subject to a flat 30% United States federal income tax on the gain derived from the
sale, which may be offset by United States source capital losses. Any non-U.S. holders described
in these bullet points should consult their own tax advisors as to the U.S. federal income tax
consequences of the sale, exchange or other disposition of shares of our common stock.
Although we believe that we may have been a USRPHC in the past, acquisitions and development
of foreign mining operations, notably San Bartolomé, Bolnisi and the Palmarejo Silver and Gold
Corporation, currently make that position less certain. Under the alternate book value test for
determining whether we are a USRPHC, we believe that we currently are not a USRPHC. However, our
USRPHC status is determined at least annually and is subject to change. Further, the IRS may
disagree with our position or may deny us the ability to use book values to determine our USRPHC
status. If we are a USRPHC, the FIRPTA rules would apply to a disposition by a non-U.S. holder of
our common stock. Assuming our common stock is regularly traded on an established securities
market, our common stock would constitute a U.S. real property interest in the hands of a non-U.S.
holder only if that non-U.S. holder owned, directly or indirectly, more than five percent of our
common stock within five years before the holders disposition of the common stock (or, if shorter,
such holders holding period). If all these conditions relating to dispositions of common stock
were met, and if the FIRPTA rules otherwise applied to a disposition of common stock, then any gain
recognized by the holder would be treated as effectively connected with a U.S. trade or business,
and, thus, would be subject to U.S. federal income tax. We believe that the common stock will be
treated as regularly traded on an established securities market.
Dividends
If we make a distribution of cash or other property (other than certain pro rata distributions
of our common stock) in respect of shares of our common stock that you hold, the distribution will
be treated as a dividend to the extent it is paid from our current or accumulated earnings and
profits. Any dividends paid to you with respect to our common stock will be subject, in general,
to U.S. federal withholding tax at a 30% rate (subject to reduction under an applicable income tax
treaty) unless the dividend is effectively connected with a trade or business conducted within the
United States, in which case the dividend would be taxable on a net income basis at the graduated
rates applicable to U.S. persons. Any such effectively connected dividends received by a non-U.S.
holder that is a corporation may also, under certain circumstances, be subject to the branch
profits tax at a 30% rate or such lower rate as may be prescribed under an applicable United States
income tax treaty. Non-U.S. holders will generally not be subject to tax with respect to a
distribution, to the extent such distribution exceeds our current and accumulated earnings and
profits, unless such distribution is effectively connected with a trade or business conducted
within the United States, in which case the distribution would be taxable pursuant to the rules
generally applicable to U.S. persons.
A non-U.S. holder of shares of common stock who wishes to claim the benefit of an applicable
treaty rate is required to satisfy applicable certification and other requirements. If a non-U.S.
holder is eligible for a reduced rate of U.S. withholding tax pursuant to an income tax treaty, the
holder may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for
refund with the IRS.
Backup Withholding and Information Reporting
If you are a non-U.S. holder, you may have to comply with specific certification procedures to
establish that you are not a United States person in order to avoid information reporting and
backup withholding tax requirements. In addition, we must report annually to the IRS and to you
the amount of, and the tax withheld with respect to, any dividends paid to you, regardless of
whether any tax was actually withheld. Copies of these information returns may also be made
available under the provisions of a specific treaty or agreement to the tax authorities of the
country in which you reside.
Backup withholding will generally not apply to payments of dividends made by us to a non-U.S.
holder of common stock if the holder has provided its taxpayer identification number or the
required certification that it is not a United States person. Information reporting may still
apply with respect to such dividends even if such
S-10
certification is provided. Notwithstanding the foregoing, backup withholding may apply if we
have actual knowledge, or reason to know, that the holder is a United States person.
Information reporting requirements and backup withholding generally will not apply to any
payments of the proceeds of the disposition of shares of common stock effected outside the United
States by a foreign office of a foreign broker (as defined in applicable Treasury Regulations).
However, unless such broker has documentary evidence in its records that the beneficial owner
is a non-U.S. holder and certain other conditions are met, or the beneficial owner otherwise
establishes an exemption, information reporting (but not backup withholding) will apply to any such
payments effected outside the United States by such a broker if it:
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derives 50% or more of its gross income for certain periods from the conduct of a
trade or business in the United States; |
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is a controlled foreign corporation for United States federal income tax purposes;
or |
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is a foreign partnership that, at any time during its taxable year, has 50% or more
of its income or capital interests owned by United States persons or is engaged in the
conduct of a United States trade or business. |
Payments of the proceeds of a disposition of shares of common stock effected by the United
States office of a broker will be subject to information reporting requirements and backup
withholding tax unless the non-U.S. holder properly certifies under penalties of perjury as to its
foreign status and certain other conditions are met or it otherwise establishes an exemption.
Any amounts withheld under the backup withholding rules from a payment to a non-U.S. holder
may be allowed as a refund or credit against the non-U.S. holders United States federal income tax
liability provided that the required information is furnished to the IRS in a timely manner.
New Legislation Relating to Foreign Accounts
Newly enacted legislation may impose withholding taxes on certain types of payments made to
foreign financial institutions and certain other non-U.S. entities after December 31, 2012. The
legislation imposes a 30% withholding tax on dividends on, or gross proceeds from the sale or other
disposition of, our common stock paid to a foreign financial institution unless the foreign
financial institution enters into an agreement with the U.S. Treasury to among other things,
undertake to identify accounts held by certain U.S. persons or U.S.-owned foreign entities,
annually report certain information about such accounts, and withhold 30% on payments to account
holders whose actions prevent it from complying with these reporting and other requirements. In
addition, the legislation imposes a 30% withholding tax on the same types of payments to a foreign
non-financial entity unless the entity certifies that it does not have any substantial U.S. owners
or furnishes identifying information regarding each substantial U.S. owner. Prospective investors
should consult their tax advisors regarding this legislation.
S-11
PLAN OF DISTRIBUTION
We are issuing the shares of common stock offered by this prospectus supplement in connection
with an installment payment in cash and common stock as contemplated by the terms of the 2012
notes. The 2012 notes require quarterly installment payments, payable in cash, shares of our
common stock or a combination of cash and shares of our common stock, at our election. The shares
of common stock to be issued in connection with the June 30, 2010 installment date will be
distributed to the record date noteholders.
The number of common shares payable in connection with an installment payment on the 2012
Notes is computed to give effect to recent share prices, valuing shares of our common stock at 90%
of the arithmetic average of the four lowest daily volume weighted average prices of our shares
during a ten trading day pricing period immediately prior to June 30, 2010. We anticipate that
certain record date noteholders have or will engage in short selling transactions in our common
stock during the pricing period and that they will expect to cover their short positions with
shares that we issue immediately following the pricing period. These activities could adversely
affect the price of our common stock, especially during the pricing period.
The record date noteholders may engage in transactions in our common stock during the time the
2012 notes are outstanding. The record date noteholders independently may engage in purchases and
sales, both long and short, of our common stock and/or derivative securities based on our common
stock. The record date noteholders are not required to hold for any period of time any shares of
our common stock issued in this offering. The Company acknowledged in the securities purchase
agreement pursuant to which the 2012 notes were issued that the purchasers of the 2012 notes
independently may engage in hedging and other trading activities, in compliance with applicable
federal and state securities laws, at various times during the period that the 2012 notes are
outstanding, including during any period when the value of our shares for purposes of issuing
shares in this offering is being determined.
S-12
LEGAL MATTERS
The validity of the securities offered by this prospectus supplement will be passed upon for
us by Kelli Kast, Esq., General Counsel of Coeur dAlene Mines Corporation, Coeur dAlene, Idaho.
EXPERTS
The consolidated balance sheets of Coeur dAlene Mines Corporation as of December 31, 2009 and
2008, and the related consolidated statements of operations and comprehensive loss, changes in
shareholders equity, and cash flows for each of the years in the three-year period ended December
31, 2009, and the auditors reports with respect to the effectiveness of internal control over
financial reporting as of December 31, 2009 have been incorporated by reference herein and in the
registration statement in reliance upon the reports of KPMG LLP, independent registered public
accounting firm, incorporated by reference herein, and upon the authority of said firm as experts
in accounting and auditing.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to incorporate by reference information into this prospectus. This means
that we can disclose important information about us and our financial condition to you by referring
you to another document filed separately with the SEC. The information incorporated by reference
is considered to be part of this prospectus, except for any information that is superseded by
information that is included in a document subsequently filed with the SEC.
This prospectus incorporates by reference the documents listed below that we have previously
filed with the SEC:
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our Annual Report on Form 10-K for the year ended December 31, 2009, filed on
February 26, 2010; |
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our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010,
filed on May 10, 2010; |
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our Current Reports on Form 8-K filed on January 6, 2010, February 5, 2010, February
9, 2010, February 10, 2010, March 2, 2010, March 11, 2010 (Item 3.02 information only),
March 31, 2010, April 1, 2010, May 6, 2010 and May 14, 2010. |
We incorporate by reference any additional documents that we file with the SEC under Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 (other than those furnished
pursuant to Item 2.02 or Item 7.01 of Form 8-K or other information furnished to the SEC) from
the date of this prospectus until the termination of an offering of securities. If anything in a
report or document we file after the date of this prospectus changes anything in this prospectus,
this prospectus will be deemed to be changed by that subsequently filed report or document
beginning on the date the report or document is filed.
You may request a copy of these filings incorporated herein by reference, including exhibits
to such documents that are specifically incorporated by reference, which we will provide at no
cost, by writing or calling us at the following address or telephone number:
Corporate Secretary
Coeur dAlene Mines Corporation
400 Coeur dAlene Mines Building
505 Front Avenue
Coeur dAlene, Idaho 83816
S-13
PROSPECTUS
COEUR DALENE MINES
CORPORATION
COMMON STOCK, PREFERRED STOCK, DEBT SECURITIES,
WARRANTS, DEPOSITARY SHARES, PURCHASE CONTRACTS,
GUARANTEES AND UNITS
This prospectus provides a general description of the common stock, preferred stock debt
securities, warrants depositary shares, purchase contracts, guarantees and units that we may offer
from time to time. Each time we sell securities, we will provide a supplement to this prospectus
that will contain specific information about the offering and the specific terms of the securities
offered. You should read this prospectus and the applicable prospectus supplement carefully before
you invest in our securities. This prospectus may not be used to consummate a sale of securities
unless accompanied by the applicable prospectus supplement.
Our common stock is listed on the New York Stock Exchange under the symbol CDE and on the
Toronto Stock Exchange under the symbol CDM.
Investing in our securities involves a high degree of risk. See Risk Factors contained in
our filings made with the Securities and Exchange Commission and the applicable prospectus
supplement.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.
This prospectus is dated August 31, 2009
If you are in a jurisdiction where offers to sell, or solicitations of offers to purchase, the
securities offered by this document are unlawful, or if you are a person to whom it is unlawful to
direct these types of activities, then the offer presented in this document does not extend to you.
The information contained in this document speaks only as of the date of this document, unless the
information specifically indicates that another date applied.
TABLE OF CONTENTS
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A Note About Forward-Looking Statements |
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About This Prospectus |
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Where You Can Find More Information |
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Incorporation of Certain Documents by Reference |
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The Company |
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Use of Proceeds |
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Ratio of Earnings to Fixed Charges |
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Description of Capital Stock |
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Description of the Debt Securities |
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Description of Warrants |
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Description of Other Securities |
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Plan of Distribution |
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Legal Matters |
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Experts |
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i
A NOTE ABOUT FORWARD-LOOKING STATEMENTS
Some of the information included in this prospectus and other materials filed or to be filed
by us with the Securities and Exchange Commission (as well as information included in oral
statements or other written statements made or to be made by us or our representatives) contains or
may contain forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These statements can be identified by
the fact that they do not relate strictly to historical or current facts and may include the words
may, could, should, would, believe, expect, anticipate, estimate, intend, plan
or other words or expressions of similar meaning. We have based these forward-looking statements
on our current expectations about future events. The forward-looking statements include statements
that reflect managements beliefs, plans, objectives, goals, expectations, anticipations and
intentions with respect to our financial condition, results of operations, future performance and
business, including statements relating to our business strategy, expected production volumes and
current and future development plans.
Oral or written forward-looking statements are included in this prospectus and other materials
filed or to be filed by us with the SEC (as well as information included in oral statements or
other written statements made or to be made by us or our representatives). Although we believe
that the expectations reflected in all of these forward-looking statements are and will be
reasonable at the time made, any or all of the forward-looking statements in this prospectus, our
Annual Report on Form 10-K and in any other public statements may prove to be incorrect, whether as
a result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties
such as future gold and silver prices, costs, ore grades, estimation of gold and silver reserves,
mining and processing conditions, construction schedules, currency exchange rates, and the
completion or updating of mining feasibility studies, changes that could result from future
acquisitions of new mining properties or businesses, the risks and hazards inherent in the mining
business (including environmental hazards, industrial accidents, weather or geologically related
conditions), regulatory and permitting matters, and risks inherent in the ownership and operation
of or investment in mining properties or businesses in foreign countries. Many of these and other
factors discussed or incorporated by reference in this prospectus, some of which are beyond our
control, will be important in determining our future performance and liquidity. Consequently,
actual results may differ materially from those that might be anticipated from forward-looking
statements. In light of these and other uncertainties, you should not regard a forward-looking
statement that we might make as a representation by us that our plans and objectives will be
achieved, and you should not place undue reliance on such forward-looking statements.
We undertake no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. However, we invite your
attention to any further disclosures made on related subjects in our subsequent reports filed with
the SEC on Forms 10-K, 10-Q and 8-K.
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement we filed with the SEC using a shelf
registration process. We may sell any combination of the securities described in this prospectus
from time to time.
The types of securities that we may offer and sell from time to time by this prospectus are:
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common stock; |
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preferred stock; |
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debt securities, which may be senior or subordinated and secured or unsecured and
which may include guarantees of the debt securities by some or all of our subsidiaries; |
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warrants entitling the holders to purchase common stock, preferred stock or debt
securities; |
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depositary shares; |
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purchase contracts; |
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guarantees; and |
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units. |
We may sell these securities either separately or in units. We may issue debt securities
convertible into shares of our common stock or preferred stock. The preferred stock also may be
convertible into shares of our common stock or another series of preferred stock. This prospectus
provides a general description of the securities that may be offered. Each time we sell
securities, we will provide a supplement to this prospectus that contains specific information
about the offering and the specific terms of the securities offered. That prospectus supplement
may include a discussion of any risk factors or other special considerations applicable to those
securities. In each prospectus supplement we will include the following information:
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the type and amount of securities that we propose to sell; |
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the initial public offering price of the securities; |
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the names of any underwriters or agents through or to which we will sell the
securities; |
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any compensation of those underwriters or agents; and |
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information about any securities exchanges or automated quotation systems on which
the securities will be listed or traded. |
In addition, the prospectus supplement also may add, update or change the information
contained in this prospectus. If there is any inconsistency between the information in this
prospectus and any prospectus supplement, you should rely on the information in the prospectus
supplement. You should read both this prospectus and any prospectus supplement together with the
additional information described under the heading Where You Can Find More Information.
The registration statement containing this prospectus, including the exhibits to the
registration statement, provides additional information about us and the securities offered under
this prospectus. The exhibits to the registration statement contain the full text of certain
contracts and other important documents we have summarized in this prospectus. You should review
the full text of these documents. The registration statement, including the exhibits, can be read
at the SECs Web site or at the SECs offices mentioned under the heading Where You Can Find More
Information.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other information with the
SEC. You may read and copy these materials at the SEC reference room at 100 F Street, N.E.,
Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on their
public reference room. Our SEC filings are also available to the public at the SECs Web site
(http://www.sec.gov).
The SECs Web site contains reports, proxy and information statements and other information
regarding issuers, like Coeur, that file electronically with the SEC. You may find our reports,
proxy statements and other information at the SEC Web site. In addition, you can obtain reports
and proxy statements and other information about us at the offices of the New York Stock Exchange,
20 Broad Street, New York, New York 10005.
We maintain a Web site on the Internet at http://www.coeur.com. We make available free of
charge, on or through our Web site, our annual report on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable
after such material is filed with the SEC.
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This reference to our Internet address is for informational purposes only and shall not, under
any circumstances, be deemed to incorporate the information available at such Internet address into
this prospectus
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to incorporate by reference information into this prospectus. This means that
we can disclose important information about us and our financial condition to you by referring you
to another document filed separately with the SEC. The information incorporated by reference is
considered to be part of this prospectus, except for any information that is superseded by
information that is included in a document subsequently filed with the SEC.
This prospectus incorporates by reference the documents listed below that we have previously
filed with the SEC:
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Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on
March 2, 2009 (including the portions of our Proxy Statement on Schedule 14A, filed on
April 1, 2009, incorporated by reference therein); |
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Quarterly Reports on Form 10-Q for the quarterly period ended March 31, 2009, filed
on May 11, 2009, and for the quarterly period ended June 30, 2009, filed on August 6,
2009; |
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Current Reports on Form 8-K, filed January 7, 2009; January 12, 2009; January 16,
2009; January 22, 2009 related to Item 1.01; March 10, 2009; March 13, 2009; March 18,
2009; March 20, 2009; May 18, 2009; May 27, 2009; June 2, 2009; June 3, 2009, June 9,
2009 (as amended by Current Report on Form 8-K/A, filed June 22, 2009) and August 17,
2009; |
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the description of our common stock contained in our Registration Statement on Form
8-A (File No. 1-08641), filed March 28, 1990, and any amendments or reports filed for
the purpose of updating that description, including our Current Report on 8-K, filed on
May 27, 2009. |
We incorporate by reference any additional documents that we file with the SEC under Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 (other than those furnished
pursuant to Item 2.02 or Item 7.01 of Form 8-K or other information furnished to the SEC) from
the date of this prospectus until the termination of an offering of securities. If anything in a
report or document we file after the date of this prospectus changes anything in this prospectus,
this prospectus will be deemed to be changed by that subsequently filed report or document
beginning on the date the report or document is filed.
You may request a copy of these filings incorporated herein by reference, including exhibits
to such documents that are specifically incorporated by reference, which we will provide at no
cost, by writing or calling us at the following address or telephone number:
Corporate Secretary
Coeur dAlene Mines Corporation
400 Coeur dAlene Mines Building
505 Front Avenue
Coeur dAlene, Idaho 83814
3
THE COMPANY
Coeur dAlene Mines Corporation is a large primary silver producer with significant gold
assets located in North America and is engaged, through its subsidiaries, in the operation and/or
ownership, development and exploration of silver and gold mining properties and companies located
primarily within South America (Chile, Argentina and Bolivia), Mexico (Chihuahua), the United
States (Nevada and Alaska) and Australia (New South Wales).
Our principal mines are located in Bolivia (the San Bartolomé silver mine) and in Mexico (the
Palmarejo silver and gold mine), in Argentina (the Martha silver mine), in Nevada (the Rochester
silver and gold mine), in Australia (the Endeavor silver mining interest) and in southern Chile
(the Cerro Bayo silver and gold mine). In addition, we own or lease, through a wholly-owned
subsidiary, a gold development project in Alaska (the Kensington gold property). We also control
strategic properties with significant exploration potential close to our existing mining
operations. Our customers are bullion trading banks that purchase silver and gold from us and then
sell these metals to end users for use in industry applications such as electronic circuitry, in
jewelry and silverware production and in the manufacture and development of photographic film. In
addition, we sell high grade gold and silver concentrates to smelters in Japan, Mexico and
Australia.
We were incorporated in Idaho in 1928. Our principal executive office is located at 505 Front
Avenue, P.O. Box I, Coeur dAlene, Idaho 83814, and our telephone number is (208) 667-3511. Our
website is www.coeur.com. Information contained in the web site is not incorporated by reference
into this prospectus, and you should not consider information contained in the web site as part of
this prospectus.
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USE OF PROCEEDS
We intend to use the net proceeds we receive from the sale of the securities as set forth in
the applicable prospectus supplement.
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RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth our ratio of earnings to fixed charges for the periods
indicated:
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Six months |
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ended June 30, |
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Years ended December 31, |
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2009 |
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Ratio of earnings to fixed charges |
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N/A |
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N/A |
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N/A |
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13.96 |
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19.78 |
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4.71 |
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N/A |
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N/Arepresents coverage ratio of less than 1. |
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Our earnings were inadequate to cover fixed charges for the six months ended June 30, 2008 and
June 30, 2009 and for 2008 and 2004. The amounts by which earnings were inadequate to cover fixed
charges were approximately $0.1 million, $1.9 million, $32.8 million and $23.9 million for the six
months ended June 30, 2009, the six months ended June 30, 2008 and for 2008 and 2004, respectively.
For purposes of calculating the ratio of earnings to fixed charges, earnings consist of income
from continuing operations before income taxes and gains/(losses) on the early retirement of debt
and fixed charges, and fixed charges consist of interest and that portion of rent deemed
representative of interest.
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DESCRIPTION OF CAPITAL STOCK
Common Stock
We are authorized to issue up to 150,000,000 shares of common stock, par value $0.01 per
share. The holders of shares of common stock are entitled to one vote for each share held of
record on each matter submitted to a vote of shareholders. Holders may not cumulate their votes in
elections of directors. Subject to preferences that may be applicable to any shares of preferred
stock outstanding at the time, holders of shares of common stock are entitled to receive ratably
such dividends as may be declared by the Board of Directors out of funds legally available therefor
and, in the event of our liquidation, dissolution or winding up, are entitled to share ratably in
all assets remaining after payment of liabilities. Holders of shares of common stock have no
preemptive rights and have no rights to convert their common stock into any other security. The
outstanding shares of common stock are fully-paid and non-assessable.
Our Articles of Incorporation include a fair price provision, applicable to some business
combination transactions in which we may be involved. The provision requires that an interested
shareholder (defined to mean a beneficial holder of 10% or more of our outstanding shares of common
stock) not engage in specified transactions (e.g., mergers, sales of assets, dissolution and
liquidation) unless one of three conditions is met:
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a majority of the directors who are unaffiliated with the interested shareholder and
were directors before the interested shareholder became an interested shareholder
approve the transaction; |
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holders of 80% or more of the outstanding shares of common stock approve the
transaction; or |
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the shareholders are all paid a fair price, i.e., generally the higher of the fair
market value of the shares or the same price as the price paid to shareholders in the
transaction in which the interested shareholder acquired its block. |
By discouraging some types of hostile takeover bids, the fair price provision may tend to
insulate our current management against the possibility of removal. We are not aware of any person
or entity proposing or contemplating such a transaction.
The transfer agent and registrar for our common stock, which is listed on the New York Stock
Exchange and the Toronto Stock Exchange, is The Bank of New York Mellon.
Preferred Stock
We are authorized to issue up to 10,000,000 shares of preferred stock, par value $1.00 per
share, no shares of which are outstanding. The Board of Directors has the authority to determine
the dividend rights, dividend rates, conversion rights, voting rights, rights and terms of
redemption and liquidation preferences, redemption prices, sinking fund terms on any series of
preferred stock, the number of shares constituting any such series and the designation thereof.
Holders of preferred stock will not have preemptive rights.
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DESCRIPTION OF THE DEBT SECURITIES
The following is a general description of the debt securities that we may offer from time to
time. The particular terms of the debt securities offered by any prospectus supplement and the
extent, if any, to which the general provisions described below may apply to those securities will
be described in the applicable prospectus supplement. We also may sell hybrid securities that
combine certain features of debt securities and other securities described in this prospectus. As
you read this section, please remember that the specific terms of a debt security as described in
the applicable prospectus supplement will supplement and may modify or replace the general terms
described in this section. If there are differences between the applicable prospectus supplement
and this prospectus, the applicable prospectus supplement will control. As a result, the
statements we make in this section may not apply to the debt security you purchase.
Except as otherwise defined herein, capitalized terms used but not defined in this section
have the respective meanings set forth in the applicable indenture. Coeur refers to Coeur
dAlene Mines Corporation on an unconsolidated basis and does not include any of its consolidated
subsidiaries.
General
The debt securities that we offer will be senior debt securities or subordinated debt
securities and may be secured or unsecured. We will issue senior debt securities under an
indenture, which we refer to as the senior indenture, to be entered into between Coeur and the
trustee named in the applicable prospectus supplement. We will issue subordinated debt securities
under an indenture, which we refer to as the subordinated indenture, to be entered into between
Coeur and the trustee named in the applicable prospectus supplement. We expect to issue secured
debt securities under an indenture, which we refer to as the secured indenture, to be entered into
among Coeur, the trustee and the collateral agent. We refer to the senior indenture, the
subordinated indenture and the secured indenture as the indentures, and to each of the trustees
under the indentures as a trustee. In addition, the indentures may be supplemented or amended as
necessary to set forth the terms of any debt securities issued under the indentures. You should
read the indentures, including any amendments or supplements, carefully to fully understand the
terms of the debt securities. The forms of the indentures have been filed as exhibits to the
registration statement of which this prospectus is a part. The indentures are subject to, and are
governed by, the Trust Indenture Act of 1939.
The senior debt securities will be Coeurs unsubordinated obligations. They will rank equally
with each other and all other unsubordinated debt, unless otherwise indicated in the applicable
prospectus supplement. The subordinated debt securities will be subordinated in right of payment
to the prior payment in full of our senior debt. See Subordination of Subordinated Debt
Securities. The subordinated debt securities will rank equally with each other, unless otherwise
indicated in the applicable prospectus supplement. We will indicate in each applicable prospectus
supplement, as of the most recent practicable date, the aggregate amount of our outstanding debt
that would rank senior to the subordinated debt securities.
The indentures do not limit the amount of debt securities that can be issued thereunder and
provide that debt securities of any series may be issued thereunder up to the aggregate principal
amount that we may authorize from time to time. Unless otherwise provided in the prospectus
supplement, the indentures do not limit the amount of other indebtedness or securities that we may
issue. We may issue debt securities of the same series at more than one time and, unless
prohibited by the terms of the series, we may reopen a series for issuances of additional debt
securities, without the consent of the holders of the outstanding debt securities of that series.
All debt securities issued as a series, including those issued pursuant to any reopening of a
series, will vote together as a single class unless otherwise described in the prospectus
supplement for such series.
Reference is made to the prospectus supplement for the following and other possible terms of
each series of the debt securities in respect of which this prospectus is being delivered:
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the title of the debt securities; |
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(2) |
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any limit upon the aggregate principal amount of the debt securities; |
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(3) |
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the price at which we will issue the debt securities; |
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(4) |
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the date or dates on which the principal of the debt securities will be payable
(or the method of determination thereof); |
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(5) |
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the rate or rates (or the method of determination thereof) at which the debt
securities will bear interest (including any interest rates applicable to overdue
payments), if any, the date or dates from which any such interest will accrue and on
which such interest will be payable, the record dates for the determination of the
holders to whom interest is payable and the dates on which any other amounts, if any,
will be payable; |
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(6) |
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if other than as set forth herein, the place or places where the principal of,
premium and other amounts, if any, and interest, if any, on the debt securities will be
payable; |
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the price or prices at which, the period or periods within which and the terms
and conditions upon which debt securities may be redeemed, in whole or in part, at our
option; |
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(8) |
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if other than the principal amount thereof, the portion of the principal amount
of the debt securities payable upon declaration of acceleration of the maturity
thereof; |
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our obligation, if any, to redeem, repurchase or repay debt securities, whether
pursuant to any sinking fund or analogous provisions or pursuant to other provisions
set forth therein or at the option of a holder thereof; |
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if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which securities of the series shall be issuable; |
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the form of such debt securities, including such legends as required by law or
as we deem necessary or appropriate; |
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whether the debt securities are convertible into common shares and, if so, the
terms and conditions of such conversion; |
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whether there are any authentication agents, paying agents, transfer agents or
registrars with respect to the debt securities; |
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whether the debt securities will be represented in whole or in part by one or
more global notes registered in the name of a depository or its nominee; |
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the ranking of such debt securities as senior debt securities or subordinated
debt securities; |
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if other than U.S. dollars, the currency, or currencies or currency units
issued by the government of one or more countries other than the United States or by
any recognized confederation or association of such governments or a composite currency
the value of which is determined by reference to the values of the currencies of any
group of countries in which the debt securities may be purchased and in which payments
on the debt securities will be made (which currencies may be different for payments of
principal and interest, if any); |
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if the debt securities will be secured by any collateral, a description of the
collateral and the terms and conditions of the security and realization provisions; |
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the ability, if any, to defer payments of principal, interest, or other
amounts; and |
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any other specific terms or conditions of the debt securities, including any
additional events of default or covenants provided for with respect to the debt
securities, and any terms that may be required by or advisable under applicable laws or
regulations. |
Principal when used herein includes any premium on any series of the debt securities.
Unless otherwise provided in the prospectus supplement relating to any debt securities,
principal and interest, if any, will be payable, and transfers of the debt securities may be
registered, at the office or offices or agency we maintain for such purposes, provided that payment
of interest on the debt securities will be paid at such place by check mailed to the persons
entitled thereto at the addresses of such persons appearing on the security register. Interest on
the debt securities, if any, will be payable on any interest payment date to the persons in whose
names the debt securities are registered at the close of business on the record date for such
interest payment.
The debt securities may be issued only in fully registered form. Additionally, the debt
securities may be represented in whole or in part by one or more global notes registered in the
name of a depository or its nominee and, if so represented, interests in such global note will be
shown on, and transfers thereof will be effected only through, records maintained by the designated
depository and its participants.
Unless otherwise provided in the prospectus supplement relating to any debt securities, the
debt securities may be exchanged for an equal aggregate principal amount of debt securities of the
same series and date of maturity in such authorized denominations as may be requested upon
surrender of the debt securities at an agency that we maintain for such purpose and upon
fulfillment of all other requirements of such agent. No service charge will be made for any
registration of transfer or exchange of the debt securities, but we may require payment of an
amount sufficient to cover any associated tax or other governmental charge.
The indentures require the annual filing by Coeur with the trustee of a certificate as to
compliance with certain covenants contained in the indentures.
We will comply with Section 14(e) under the Exchange Act, to the extent applicable, and any
other tender offer rules under the Exchange Act that may be applicable, in connection with any
obligation to purchase debt securities at the option of the holders thereof. Any such obligation
applicable to a series of debt securities will be described in the prospectus supplement relating
thereto.
Unless otherwise described in a prospectus supplement relating to any debt securities, there
are no covenants or provisions contained in the indentures that may afford the holders of debt
securities protection in the event that we enter into a highly leveraged transaction.
The statements made hereunder relating to the indentures and the debt securities are summaries
of certain provisions thereof and are qualified in their entirety by reference to all provisions of
the indentures and the debt securities and the descriptions thereof, if different, in the
applicable prospectus supplement.
Form of the Debt Securities
The indentures provide that we may issue debt securities in the forms, including temporary or
definitive global form, established by a board resolution or in a supplemental indenture.
Unless indicated otherwise in the applicable prospectus supplement, we will issue debt
securities in denominations of $1,000 or any integral multiple of $1,000, and interest on the debt
securities, if any, will be computed on the basis of a 360-day year of twelve 30-day months.
Registration, Transfer, Payment and Paying Agent
We will maintain an office or agency where the debt securities may be presented for payment,
conversion, registration of transfer and exchange. The indenture trustee is appointed security
registrar for purposes of registering, and registering transfers of, the debt securities. Unless
otherwise indicated in a board resolution or
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supplemental indenture, the indenture trustee also will act as paying agent, and will be
authorized to pay principal and interest, if any, on any debt security of any series.
There will be no service charge for any registration of transfer or exchange of debt
securities, but we or the indenture trustee may require a holder to pay any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of the debt securities, other than certain exchanges not involving any transfer, and other than
certain exchanges or transfers as may be specified in a board resolution or supplemental indenture.
Global Debt Securities
Unless otherwise indicated in the applicable prospectus supplement for a series of debt
securities, each series of the debt securities will be issued in global form, which means that we
will deposit with the depositary identified in the applicable prospectus supplement (or its
custodian) one or more certificates representing the entire series, as described below under
Book-Entry Procedures and Settlement. Global debt securities may be issued in either temporary
or definitive form.
The applicable prospectus supplement will describe any limitations and restrictions relating
to a series of global debt securities.
Book-Entry Procedures and Settlement
Most offered debt securities will be book-entry, or global, securities. Upon issuance, all
book-entry securities will be represented by one or more fully registered global securities,
without coupons. Each global security will be deposited with, or on behalf of, The Depository
Trust Company or DTC, a securities depository, and will be registered in the name of DTC or a
nominee of DTC. DTC therefore will be the only registered holder of these securities.
Purchasers of debt securities may hold interests in the global securities through DTC if they
are participants in the DTC system. Purchasers also may hold interests through a securities
intermediarya bank, brokerage house and other institution that maintains securities accounts for
customersthat has an account with DTC or its nominee. DTC will maintain accounts showing the
security holdings of its participants, and these participants will in turn maintain accounts
showing the security holdings of their customers. Some of these customers may be securities
intermediaries holding securities for their customers. Thus, each beneficial owner of a book-entry
security will hold that security indirectly through a hierarchy of intermediaries, with DTC at the
top and the beneficial owners own securities intermediary at the bottom.
The securities of each beneficial owner of a book-entry security will be evidenced solely by
entries on the books of the beneficial owners securities intermediary. The actual purchaser of
the securities generally will not be entitled to have the securities represented by the global
securities registered in its name and will not be considered the owner under the indenture, the
declaration of trust or other applicable governing documents relating to the security. In most
cases, a beneficial owner will not be able to obtain a paper certificate evidencing the holders
ownership of securities. The book-entry system for holding securities eliminates the need for
physical movement of certificates. However, the laws of some jurisdictions require some purchasers
of securities to take physical delivery of their securities in definitive form. These laws may
impair the ability to transfer book-entry securities.
A beneficial owner of book-entry securities represented by a global security may exchange the
securities for definitive, or paper, securities only if:
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DTC is unwilling or unable to continue as depositary for such global security and we
do not appoint a qualified replacement for DTC within 90 days; or |
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we decide in our sole discretion to allow some or all book-entry securities to be
exchangeable for definitive securities in registered form. |
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Unless otherwise indicated, any global security that is exchangeable will be exchangeable in
whole for definitive securities in registered form, with the same terms and of an equal aggregate
principal amount. Definitive securities will be registered in the name or names of the person or
persons specified by DTC in a written instruction to the registrar of the securities. DTC may base
its written instruction upon directions that it receives from its participants.
In this prospectus, for book-entry securities, references to actions taken by security holders
will mean actions taken by DTC upon instructions from its participants, and references to payments
and notices of redemption to security holders will mean payments and notices of redemption to DTC
as the registered holder of the securities for distribution to participants in accordance with
DTCs procedures.
DTC is a limited purpose trust company organized under the laws of the State of New York, a
member of the Federal Reserve System, a clearing corporation within the meaning of the New York
Uniform Commercial Code and a clearing agency registered under section 17A of the Securities
Exchange Act of 1934. The rules applicable to DTC and its participants are on file with the SEC.
Neither we nor any trustee or underwriter will have any responsibility or liability for any
aspect of the records relating to, or payments made on account of, beneficial ownership interest in
the book-entry securities or for maintaining, supervising or reviewing any records relating to the
beneficial ownership interests.
Links may be established among DTC, Clearstream Banking, S.A. (Clearstream) and the Euroclear
System (Euroclear) to facilitate the initial issuance of book-entry securities and cross-market
transfers of book-entry securities associated with secondary market trading. Euroclear and
Clearstream are international clearing systems that perform functions similar to those that DTC
performs in the U.S.
Although we understand that DTC, Clearstream and Euroclear have agreed to the procedures
provided below in order to facilitate transfers, they are under no obligation to perform such
procedures, and the procedures may be modified or discontinued at any time.
Clearstream and Euroclear will record the ownership interests of their participants in much
the same way as DTC, and DTC will record the aggregate ownership of each of the U.S. agents of
Clearstream and Euroclear, as participants in DTC.
When book-entry securities are to be transferred from the account of a DTC participant to the
account of a Clearstream participant or a Euroclear participant, the purchaser must send
instructions to Clearstream or Euroclear through a participant at least one business day prior to
settlement. Clearstream or Euroclear, as the case may be, will instruct its U.S. agent to receive
book-entry securities against payment. After settlement, Clearstream or Euroclear will credit its
participants account. Credit for the book-entry securities will appear on the next day (European
time).
Because settlement is taking place during New York business hours, DTC participants can employ
their usual procedures for sending book-entry securities to the relevant U.S. agent acting for the
benefit of Clearstream or Euroclear participants. The sale proceeds will be available to the DTC
seller on the settlement date. Thus, to the DTC participant, a cross-market transaction will
settle no differently than a trade between two DTC participants.
When a Clearstream or Euroclear participant wishes to transfer book-entry securities to a DTC
participant, the seller must send instructions to Clearstream or Euroclear through a participant at
least one business day prior to settlement. In these cases, Clearstream or Euroclear will instruct
its U.S. agent to transfer the book-entry securities against payment. The payment will then be
reflected in the account of the Clearstream or Euroclear participant the following day, with the
proceeds back-valued to the value date (which would be the preceding day, when settlement occurs in
New York). If settlement is not completed on the intended value date (i.e., the trade fails),
proceeds credited to the Clearstream or Euroclear participants account would instead be valued as
of the actual settlement date.
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The information in this Book-Entry Procedures and Settlement section, including any
description of the operations and procedures of DTC, Euroclear or Clearstream, has been provided
solely as a matter of convenience. We do not take any responsibility for the accuracy of this
information, and this information is not intended to serve as a representation, warranty or
contract modification of any kind. The operations and procedures of DTC, Euroclear and Clearstream
are solely within the control of such settlement systems and are subject to changes by them. We
urge investors to contact such systems or their participants directly to discuss these matters.
Subordination of Subordinated Debt Securities
We will set forth in the applicable prospectus supplement the terms and conditions, if any, upon
which any series of subordinated debt securities is subordinated to debt securities of another
series or to our other indebtedness. The terms will include a description of:
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the indebtedness ranking senior to the debt securities being offered; |
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the restrictions, if any, on payments to the holders of the debt securities
being offered while a default with respect to the senior indebtedness is continuing;
and |
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the provisions requiring holders of the debt securities being offered to remit
some payments to the holders of senior indebtedness. |
Events of Default
Except as otherwise set forth in the prospectus supplement relating to any debt securities, an
event of default with respect to the debt securities of any series is defined in the indentures as:
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default in the payment of any installment of interest upon any of the debt
securities of such series as and when the same shall become due and payable, and
continuance of such default for a period of 30 days; |
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default in the payment of all or any part of the principal of any of the debt
securities of such series as and when the same shall become due and payable either at
maturity, upon any redemption or repurchase, by declaration or otherwise; |
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default in the performance, or breach, of any other covenant or warranty
contained in the debt securities of such series or set forth in the applicable
indenture (other than the failure to comply with any covenant or agreement to file with
the trustee information required to be filed with the SEC or a default in the
performance or breach of a covenant or warranty included in the applicable indenture
solely for the benefit of one or more series of debt securities other than such series)
and continuance of such default or breach for a period of 90 days after due notice by
the trustee or by the holders of at least 25% in principal amount of the outstanding
securities of such series; or |
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certain events of bankruptcy, insolvency or reorganization of Coeur and, as
specified in the relevant prospectus supplement, certain of our subsidiaries. |
Any failure to perform, or breach of, any covenant or agreement by Coeur in respect of the
debt securities with respect to the filing with the trustee of the information required to be filed
with the SEC shall not be a default or an event of default. Remedies against Coeur for any such
failure or breach will be limited to liquidated damages. If there is such a failure or breach and
continuance of such failure or breach for a period of 90 days after the date on which there has
been given, by registered or certified mail, to Coeur by the trustee or to Coeur and the trustee by
the holders of at least 25% in principal amount of the outstanding debt securities of such series,
a written notice specifying such failure or breach and requiring it to be remedied and stating that
such notice is a Notice of Reporting Noncompliance under the indenture, Coeur will pay liquidated
damages to all holders of debt securities, at a rate per year equal to 0.25% of the principal
amount of such debt securities from the 90th day following such notice to and including the 150th
day following such notice and at a rate per year equal to 0.5% of the principal
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amount of such Securities from and including the 151st day following such notice, until such
failure or breach is cured.
Additional Events of Default may be added for the benefit of holders of certain series of debt
securities that, if added, will be described in the prospectus supplement relating to such debt
securities.
The indentures provide that the trustee shall notify the holders of debt securities of each
series of any continuing default known to the trustee that has occurred with respect to such series
within 90 days after the occurrence thereof. The indentures provide that, notwithstanding the
foregoing, except in the case of default in the payment of the principal of, or interest, if any,
on any of the debt securities of such series, the trustee may withhold such notice if the trustee
in good faith determines that the withholding of such notice is in the interests of the holders of
debt securities of such series. In addition, we will be required to deliver to the trustee, within
120 days after the end of each year, a certificate indicating whether the officers signing such
certificate on our behalf know of any default with respect to the debt securities of any series
that occurred during the previous year, specifying each such default and the nature thereof.
Except as otherwise set forth in the prospectus supplement relating to any debt securities,
the indentures provide that, if an event of default (other than an event of default relating to
certain events of bankruptcy, insolvency or reorganizations) with respect to any series of debt
securities shall have occurred and be continuing, either the trustee or the holders of not less
than 25% in aggregate principal amount of debt securities of such series then outstanding, by
notice to Coeur, may declare the principal amount of all debt securities of such series and accrued
and unpaid interest to be due and payable immediately, but upon certain conditions such declaration
may be annulled. Any past defaults and the consequences thereof, except a default in the payment
of principal of or interest, if any, on debt securities of such series, may be waived by the
holders of a majority in principal amount of the debt securities of such series then outstanding.
Subject to the provisions of the indentures relating to the duties of the trustee, in case an
event of default with respect to any series of debt securities shall occur and be continuing, the
trustee shall not be under any obligation to exercise any of the trusts or powers vested in it by
the indentures at the request or direction of any of the holders of such series, unless such
holders shall have offered to such trustee reasonable security or indemnity. The holders of a
majority in aggregate principal amount of the debt securities of each series affected and then
outstanding shall have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the trustee under the applicable indenture or exercising any trust or
power conferred on the trustee with respect to the debt securities of such series; provided that
the trustee may refuse to follow any direction which is in conflict with any law or such indenture
and subject to certain other limitations.
No holder of any debt security of any series will have any right by virtue or by availing of
any provision of the indentures to institute any proceeding at law or in equity or in bankruptcy or
otherwise with respect to the indentures or for any remedy thereunder, unless such holder shall
have previously given the trustee written notice of an event of default with respect to debt
securities of such series and unless the holders of at least 25% in aggregate principal amount of
the outstanding debt securities of such series shall also have made written request, and offered
reasonable indemnity, to the trustee to institute such proceeding as trustee, and the trustee shall
have failed to institute such proceeding within 60 days after its receipt of such request, and the
trustee shall not have received from the holders of a majority in aggregate principal amount of the
outstanding debt securities of such series a direction inconsistent with such request. However,
the right of a holder of any debt security to receive payment of the principal of and interest, if
any, on such debt security on or after the due dates expressed in such debt security, or to
institute suit for the enforcement of any such payment on or after such dates, shall not be
impaired or affected without the consent of such holder.
Merger
Each indenture provides that Coeur may consolidate with, sell, convey or lease all or
substantially all of its assets to, or amalgamate or merge with or into, any other corporation, if:
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either (a) Coeur is the continuing company or (b) the successor company is a
corporation incorporated under the laws of the United States or any state thereof, a
member state of the |
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European Union or any political subdivision thereof and expressly assumes the due
and punctual payment of the principal of and interest on all the debt securities
outstanding under such indenture according to their tenor and the due and punctual
performance and observance of all of the covenants and conditions of such indenture
to be performed or observed by us; and |
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Coeur or such continuing or successor company, as the case may be, is not,
immediately after such amalgamation, merger, consolidation, sale, conveyance or lease,
in material default in the performance or observance of any such covenant or condition. |
Satisfaction and Discharge of Indentures
The indenture with respect to any series of debt securities (except for certain specified
surviving obligations, including our obligation to pay the principal of and interest, if any, on
the debt securities of such series) will be discharged and cancelled upon the satisfaction of
certain conditions, including the payment of all the debt securities of such series or the deposit
with the trustee under such indenture of cash or appropriate government obligations or a
combination thereof sufficient for such payment or redemption in accordance with the applicable
indenture and the terms of the debt securities of such series.
Modification of the Indentures
The indentures contain provisions permitting us and the trustee, with the consent of the
holders of not less than a majority in aggregate principal amount of the debt securities of each
series at the time outstanding under the applicable indenture affected thereby, to execute
supplemental indentures adding any provisions to, or changing in any manner or eliminating any of
the provisions of, the applicable indenture or any supplemental indenture or modifying in any
manner the rights of the holders of the debt securities of each such series; provided that no such
supplemental indenture may:
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extend the final maturity date of any debt security, or reduce the principal
amount thereof, or reduce the rate or extend the time of payment of any interest
thereon, or reduce any amount payable on redemption thereof, or impair or affect the
right of any holder of debt securities to institute suit for payment thereof or, if the
debt securities provide therefor, any right of repayment at the option of the holders
of the debt securities, without the consent of the holder of each debt security so
affected; |
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reduce the aforesaid percentage of debt securities of such series, the consent
of the holders of which is required for any such supplemental indenture, without the
consent of the holders of all debt securities of such series so affected; or |
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reduce the amount of principal payable upon acceleration of the maturity date
of any original issue discount security. |
Additional amendments requiring the consent of each holder affected thereby may be specified
for the benefit of holders of certain series of debt securities and, if added, will be described in
the prospectus supplement relating to such debt securities.
Additionally, in certain circumstances prescribed in the indenture governing the relevant
series of debt securities, we and the trustee may execute supplemental indentures without the
consent of the holders of debt securities.
Defeasance
The indentures provide, if such provision is made applicable to the debt securities of any
series, that we may elect to terminate, and be deemed to have satisfied, all of our obligations
with respect to such debt securities (except for the obligations to register the transfer or
exchange of such debt securities, to replace mutilated, destroyed, lost or stolen debt securities,
to maintain an office or agency in respect of the debt securities, to
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compensate and indemnify the trustee and to punctually pay or cause to be paid the principal
of, and interest, if any, on all debt securities of such series when due) (defeasance) upon the
deposit with the trustee, in trust for such purpose, of funds and/or government obligations which
through the payment of principal and interest in accordance with their terms will provide funds in
an amount sufficient to pay the principal of and premium and interest, if any, on the outstanding
debt securities of such series, and any mandatory sinking fund or analogous payments thereon, on
the scheduled due dates therefor. Such a trust may be established only if we comply with certain
conditions, including delivery to the trustee of an opinion of counsel confirming that, subject to
customary assumptions and exclusions, the holders of such debt securities will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such defeasance and will
be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such defeasance had not occurred.
The prospectus supplement may further describe these or other provisions, if any, permitting
defeasance with respect to the debt securities of any series.
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DESCRIPTION OF WARRANTS
We may issue warrants for the purchase of our common stock, preferred stock or debt securities
or units of two or more of these types of securities. Warrants may be issued independently or
together with common stock, preferred stock or debt securities and may be attached to or separate
from these securities. Each series of warrants will be issued under a separate warrant agreement.
We will distribute a prospectus supplement with regard to each issue or series of warrants.
Warrants to Purchase Common Stock and Preferred Stock
Each prospectus supplement for warrants to purchase common stock or preferred stock, will
describe:
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the title of the warrants; |
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the securities for which the warrants are exercisable; |
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the price or prices at which the warrants will be issued; |
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if applicable, the number of the warrants issued with each share of our common stock
or preferred stock or a specified principal amount of our debt securities; |
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if applicable, the date on and after which such warrants and the related securities
will be separately transferable; |
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any provisions for adjustment of the number or amount of shares of our common stock
or preferred stock receivable upon exercise of the warrants or the exercise price of
the warrants; |
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if applicable, a discussion of material federal income tax considerations; and |
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any other material terms of such warrants, including terms, procedures and
limitations relating to the exchange and exercise of such warrants. |
Warrants to Purchase Debt Securities
Each prospectus supplement for warrants to purchase debt securities will describe:
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the title of the debt warrants; |
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the aggregate number of the debt warrants; |
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the price or prices at which the debt warrants will be issued; |
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the designation, aggregate principal amount and terms of the debt securities
purchasable upon exercise of the debt warrants, and the procedures and conditions
relating to the exercise of the debt warrants; |
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if applicable, the number of the warrants issued with each share of our preferred
stock or common stock or a specified principal amount of our debt securities; |
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if applicable, the date on and after which the debt warrants and the related
securities will be separately transferable; |
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the principal amount of and exercise price for debt securities that may be purchased
upon exercise of each debt warrant; |
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the maximum or minimum number of the debt warrants which may be exercised at any
time; |
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if applicable, a discussion of any material federal income tax considerations; and |
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any other material terms of the debt warrants and terms, procedures and limitations
relating to the exercise of the debt warrants. |
Certificates for warrants to purchase debt securities will be exchangeable for new debt
warrant certificates of different denominations. Warrants may be exercised at the corporate trust
office of the warrant agent or any other office indicated in the prospectus supplement.
Exercise of Warrants
Each warrant will entitle the holder of the warrant to purchase shares of common stock or
preferred stock or the principal amount of debt securities at the exercise price as shall in each
case be set forth in, or be determinable as set forth in, the prospectus supplement relating to the
warrants offered in the applicable prospectus supplement. Warrants may be exercised at any time up
to the close of business on the expiration date set forth in the applicable prospectus supplement.
After the close of business on the expiration date, unexercised warrants will become void.
Upon receipt of payment and the warrant certificate properly completed and duly executed at
the corporate trust office of the warrant agent or any other office indicated in the prospectus
supplement, we will, as soon as practicable, forward the common stock, preferred stock or debt
securities to be purchased upon such exercise. If less than all of the warrants represented by a
warrant certificate are exercised, a new warrant certificate will be issued for the remaining
warrants.
Prior to the exercise of any warrants to purchase common stock, preferred stock or debt
securities holders of the warrants will not have any of the rights of holders of the common stock,
preferred stock or debt securities purchasable upon exercise, including:
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in the case of warrants for the purchase of common stock or preferred stock, the
right to vote or to receive any payments of dividends on the common stock or preferred
stock purchasable upon exercise. |
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in the case of warrants for the purchase of debt securities, the right to receive
payments of principal of, or any premium or interest on, the debt securities
purchasable upon exercise or to enforce covenants in the applicable indenture; or |
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DESCRIPTION OF OTHER SECURITIES
We will set forth in the applicable prospectus supplement a description of any depositary
shares, purchase contracts, guarantees or units that may be offered pursuant to this prospectus.
The depositary shares, purchase contracts, guarantees and units and each depositary agreement,
purchase contract agreement, guarantee and unit agreement will be governed by the laws of the State
of New York.
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PLAN OF DISTRIBUTION
We may sell the offered securities through agents, through underwriters or dealers, directly
to one or more purchasers or through a combination of any of these methods of sale. The prospectus
supplement will include the following information:
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the names of any underwriters, dealers or agents; |
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the purchase price of securities from us and, if the purchase price is not payable
in U.S. dollars, the currency or composite currency in which the purchase price is
payable; |
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the net proceeds to us from the sale of securities; |
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any delayed delivery arrangements; |
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any underwriting discounts, commissions and other items constituting underwriters
compensation; |
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any discounts or concessions allowed or reallowed or paid to dealers; and |
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any commissions paid to agents. |
Sale Through Underwriters or Dealers
If we use underwriters in the sale, the underwriters will acquire the securities for their own
account. The underwriters may resell the securities from time to time in one or more transactions,
including negotiated transactions, at a fixed public offering price or at varying prices determined
at the time of sale. Underwriters may offer securities to the public either through underwriting
syndicates represented by one or more managing underwriters or directly by one or more firms acting
as underwriters. Unless we inform you otherwise in the prospectus supplement, the obligations of
the underwriters to purchase the securities will be subject to certain conditions, and the
underwriters will be obligated to purchase all the offered securities if they purchase any of them.
The underwriters may change from time to time any initial public offering price and any discounts
or concessions allowed or reallowed or paid to dealers. If we utilize an underwriter or
underwriters in the sale, we will execute an underwriting agreement with such underwriters at the
time of sale to them. Any underwriters will use the prospectus supplement to make sales of the
securities in respect of which this prospectus is delivered to the public.
In connection with any particular offering pursuant to this shelf registration statement, an
underwriter may engage in stabilizing transactions, over-allotment transactions, syndicate covering
transactions and penalty bids.
Stabilizing transactions permit bids to purchase the underlying security so long as the
stabilizing bids do not exceed a specified maximum price.
Over-allotment involves sales by an underwriter of shares in excess of the number of shares an
underwriter is obligated to purchase, which creates a syndicate short position. The short position
may be either a covered short position or a naked short position. In a covered short position, the
number of shares over-allotted by an underwriter is not greater than the number of shares that it
may purchase in the over-allotment option. In a naked short position, the number of shares
involved is greater than the number of shares in the over-allotment option. An underwriter may
close out any short position by either exercising its over-allotment option and/or purchasing
shares in the open market.
Syndicate covering transactions involve purchases of the common shares in the open market
after the distribution has been completed in order to cover syndicate short positions. In
determining the source of shares to close out the short position, an underwriter will consider,
among other things, the price of shares available for purchase in the open market as compared to
the price at which they may purchase shares through the over-allotment option. If an underwriter
sells more shares than could be covered by the over-allotment option, a naked short position, the
position can only be closed out by buying shares in the open market. A naked short position is
more
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likely to be created if an underwriter is concerned that there could be downward pressure on
the price of the shares in the open market after pricing that could adversely affect investors who
purchase in the offering.
Penalty bids permit representatives to reclaim a selling concession from a syndicate member
when the common shares originally sold by the syndicate member is purchased in a stabilizing or
syndicate covering transaction to cover syndicate short positions.
These stabilizing transactions, syndicate covering transactions and penalty bids may have the
effect of raising or maintaining the market price of our common shares or preventing or retarding a
decline in the market price of the common shares. As a result, the price of our common shares may
be higher than the price that might otherwise exist in the open market. These transactions may be
effected on the New York Stock Exchange or otherwise and, if commenced, may be discontinued at any
time.
If we use dealers in the sale of securities, we will sell the securities to the dealers as
principals. They may then resell those securities to the public at varying prices determined by
the dealers at the time of resale. We will include in the prospectus supplement the names of the
dealers and the terms of the transaction.
Direct Sales and Sales Through Agents
We may sell the securities directly, without the involvement of underwriters or agents. We
also many sell the securities through agents we designate from time to time, who may be deemed to
be underwriters as that term is defined in the Securities Act. In the prospectus supplement, we
will name any agent involved in the offer or sale of the securities, and we will describe any
commissions payable by us to the agent. Unless we inform you otherwise in the prospectus
supplement, any agent will agree to use its reasonable best efforts to solicit purchases for the
period of its appointment.
We may sell the securities directly to institutional investors or others who may be deemed to
be underwriters within the meaning of the Securities Act with respect to any sale of those
securities. We will describe the terms of any such sales in the prospectus supplement.
Delayed Delivery Contracts
If we so indicate in the prospectus supplement, we may authorize agents, underwriters or
dealers to solicit offers from certain types of institutions to purchase securities from us at the
public offering price under delayed delivery contracts. These contracts would provide for payment
and delivery on a specified date in the future. The contracts would be subject only to those
conditions described in the prospectus supplement. The prospectus supplement would describe the
commission payable for solicitation of those contracts.
General Information
We may have agreements with the agents, dealers and underwriters to indemnify them against
certain civil liabilities, including liabilities under the Securities Act, or to contribute with
respect to payments that the agents, dealers or underwriters may be required to make. Agents,
dealers and underwriters may be customers of, engage in transactions with or perform services for
us in the ordinary course of their business.
In order to comply with the securities laws of some states, if applicable, securities must be
sold in those states only through registered or licensed brokers or dealers. In addition, some
states may restrict the us from selling securities unless the securities have been registered or
qualified for sale in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.
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LEGAL MATTERS
In connection with particular offerings of the securities in the future, the validity of those
securities may be passed upon for us by Kelli Kast, General Counsel of Coeur dAlene Mines
Corporation, or Gibson, Dunn & Crutcher LLP or others named in the applicable prospectus
supplement, and for any underwriters or agents by counsel named in the applicable prospectus
supplement.
EXPERTS
The consolidated balance sheets of Coeur dAlene Mines Corporation as of December 31, 2008 and
2007, and the related consolidated statements of operations and comprehensive loss, changes in
shareholders equity, and cash flows for each of the years in the three-year period ended December
31, 2008, and the auditors reports with respect to the effectiveness of internal control over
financial reporting as of December 31, 2008 have been incorporated by reference herein and in the
registration statement in reliance upon the reports of KPMG LLP, independent registered public
accounting firm, incorporated by reference herein, and upon the authority of said firm as experts
in accounting and auditing.
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Coeur dAlene Mines Corporation
Common Stock
PROSPECTUS SUPPLEMENT
(to Prospectus dated August 31, 2009)