Coeur sheds Aussie subsidiary

Denver — Idaho-based Coeur d’Alene Mines (CDE-N) has pocketed US$15.6 million by selling its half-interest in Gasgoyne Gold Mines to Sons of Gwalia. Both Gasgoyne and Gwalia are based in Australia.

The transaction enabled Sons of Gwalia to complete its acquisition of Gasgoyne, which it initiated in 1996.

The mine contributed more than 25,000 oz. gold annually to Coeur, though, as a result of the recent transaction, the company will record a US$12.2-million writedown in the fourth quarter of 2000.

The sale of Gasgoyne also includes Coeur’s share of the producer’s 90,000-oz. gold hedge position, as well as its exploration properties across Australia.

In the meantime, Coeur will focus on its core business of silver exploration, with a 40,000-ft. drilling program under way at the Rochester mine in Nevada. It is also completing a development program at the Silver Valley operation in northern Idaho and feasibility studies at the San Bartolome project in Bolivia.