Submitted by Daniel Tarockoff as part of our contributors program.
Early Wednesday morning, Pershing Gold Corporation (OTCBB:PGLC) excitedly announced that $2 billion Coeur d’Alene Mines Corporation (NYSE:CDE)(TSX:CDM) purchased 10,937,500 shares of Pershing Gold Common Stock in a private placement. The company paid $0.32 per share, a shockingly high valuation considering their stock price hovered around $0.36. Following the company’s purchase, former investor Dr. Phillip Frost joined Coeur in the private placement under similar terms, purchasing 1,562,500 shares of Common Stock through Frost Gamma Investment Trust. As part of the agreement, both Coeur and Frost Gamma Investment Trust will be allowed to participate in future financings. Gross proceeds from the two companies’ private placement totaled $4 million.
The large investment from Coeur, a company that may have previously been viewed as a strong competitor to Pershing, offers a stream of confidence to investors in the industry. After receiving backing from the $25 billion Newmont Mining Corporation (NYSE:NEM)(TSX:NMC) as well as the prominent Dr. Frost, the new addition of Coeur is yet another promising sign that Pershing Gold has the tools for success.
The Executive Chairman and CEO of Pershing Gold, Stephen Alfers, expressed his excitement about the news. “As the largest U.S.-based primary silver producer and a growing gold producer, we are very pleased that Coeur has chosen to make this significant investment in Pershing Gold. We plan to use the proceeds to continue our exploration and development efforts at our Relief Canyon properties, including the Pershing Packard exploration project, and for general corporate purposes.”
The Pershing Packard exploration project runs along the northern edge of the Relief Canyon, only about one mile south of Coeur’s Nevada Packard Mine. Pershing continues to develop mining targets along the region, expanding its 24,000-acre land package. A map of the Pershing Packard exploration project can be found here.
About Pershing Gold Corporation
Pershing Gold Corporation is a newly formed gold exploration and development company uniquely positioned to create shareholder value by capitalizing upon the record-high gold price, a near-term opportunity to put the Relief Canyon Mine back into production, opportunities to acquire exciting gold exploration properties with exceptional gold discovery opportunities in an under-explored part of Nevada – Pershing County.