SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): September 8, 1999
COEUR D'ALENE MINES CORPORATION
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(Exact name of Registrant as specified in its charter)
Idaho 1-8641 82-0109423
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification
Number)
400 Coeur d'Alene Mines Bldg.
505 Front Avenue
Coeur d'Alene, Idaho 83814
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (208) 667-3511
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Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On September 8, 1999, the Board of Directors of Coeur d'Alene Mines
Corporation (the "Company") announced that it accepted the offer of Cyprus
Minerals Company ("Cyprus") to settle the Company's lawsuit against Cyprus
relating to the Golden Cross Mine in New Zealand for $31.5 million, and that
the Company expects to record other income of approximately $19 million during
the third quarter 1999. A copy of the Company's press release, dated September
8, 1999, announcing the settlement is filed as exhibit to this report.
Item 7. Financial Statements, Pro Forma Financial Information And Exhibits
(c) EXHIBITS. The following exhibit is filed herewith:
Exhibit
Number Description
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99(a) Press Release of Coeur d'Alene Mines
Corporation, dated September 8, 1999
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COEUR D'ALENE MINES CORPORATION
(Registrant)
Dated: September 8, 1999
By: /s/GEOFFREY A. BURNS
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Geoffrey A. Burns
Vice President and
Chief Financial Officer
EXHIBIT 99(A)
PRESS RELEASE
COEUR D'ALENE MINES SETTLES LAWSUIT
Coeur d'Alene, Idaho, September 8, 1999 - Coeur d'Alene Mines
Corporation (NYSE:CDE) announced today that it has reached agreement with
Cyprus Minerals Company to settle Coeur's lawsuit against Cyprus relating to
the Golden Cross Mine in New Zealand for $31.5 million.
Coeur's lawsuit against Cyprus, instituted in July 1996 in the District
Court of Kooteani County, Idaho, arose from Cyprus' sale in April 1993 to
Coeur of the New Zealand-based corporation that owned an 80% interest in the
Golden Cross Mine located in that country. Coeur's lawsuit, as amended, sought
damages arising from ground movement and instability, threatening the
integrity of the mine site. Due to such ground movement and instability, Coeur
effected a $53 million write-down of its interest in the Golden Cross Mine and
a nearby property during the second quarter of 1996.
During the second quarter of 1997, Coeur received its 80% share of a $10
million flood insurance recovery relating to the business interruption and
property damage at the mine, which proceeds were recorded by Coeur as other
income in 1997.
As announced by Coeur earlier this year, in May 1999 Coeur settled the
class action lawsuit filed by certain purchasers of its common stock in July
1997 in the Federal District Court for the District of Colorado against Coeur
and certain of its officers. The plaintiffs in that lawsuit alleged that the
defendants knew but did not publicly disclose adverse financial information
relating to certain mining properties, including the Golden Cross Mine.
Although Coeur denied the plaintiffs' allegations, it determined it would be
in the best interests of Coeur to settle the class action and entered into a
settlement agreement that was approved by the Court in July 1999.
The settlement contained an acknowledgement by the plaintiffs that they
were unable to identify evidence to support a charge that the officers of
Coeur had been responsible for violations of the federal securities laws. The
terms of that settlement provided that the plaintiffs would be entitled to 50%
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of the net proceeds, up to a maximum of $6 million, recovered by Coeur from
its lawsuit against Cyprus after Coeur has first recouped its costs and
expenses incurred in litigating the lawsuit and after the payment of $4
million to settle the subrogation claim of Coeur's flood insurance carrier.
As a result of the settlement of this lawsuit, Coeur expects to record
other income of approximately $19 million during the third quarter of 1999.
(This is the net amount of settlement proceeds after deducting the $4 million
payment to Coeur's flood insurance carrier, $6 million payment to the
plaintiffs in the class action and $2.5 million for estimated legal costs.)
