TAHOE RESOURCES INC. ANNOUNCES CLOSING OF OVER-ALLOTMENT OPTION
Vancouver, British Columbia (June 17, 2010) – Tahoe Resources Inc. (Tahoe or the Company) (TSX: THO) is pleased to announce that it has completed the sale of an additional 5,800,000 common shares of the Company at a price of CAD$6.00 per common share for additional gross proceeds of CAD$34,800,000, pursuant to the full exercise of the over-allotment option granted in connection with the Company’s initial public offering which closed on June 8, 2010. The exercise of the over-allotment option brings the total number of common shares sold by the Company pursuant to its initial public offering to 63,800,000 and the total gross proceeds from the initial public offering to CAD$382,800,000.
Additionally, under the terms of the agreement with two affiliates of Goldcorp Inc. (the Vendors) pursuant to which the Company acquired the Escobal Project, the Company expects to issue an additional 4,079,333 common shares to the Vendors to permit the Vendors to maintain an aggregate 40% interest (on a fully-diluted basis) in Tahoe’s issued and outstanding common shares. As a result of this expected common share issuance to the Vendors, the Company also expects to receive US$22,224,866 in cash from the Vendors as a partial repayment of the cash consideration paid to the Vendors on June 8, 2010 in connection with the acquisition of the Escobal Project.
About the Escobal Project
The Escobal Project is a recent discovery of high-grade silver, gold, lead and zinc mineralization in southeast Guatemala. The project contains an Indicated Mineral Resource of approximately 100M oz silver, based on 4,570,000 tonnes of ore at a silver grade of 684 g/t and an Inferred Mineral Resource of approximately 176M oz silver, based on 12,800,000 tonnes of ore at a silver grade of 427 g/t. The Mineral Resources are calculated based on 46,333 m of drilling in 175 holes (Source: Mineral Resource NI 43-101 Technical Report – AMEC Americas Ltd. dated April 30, 2010, prepared under the guidance of Mr. Greg Kulla, P. Geo, a qualified person.) Tahoe plans to continue the ongoing exploration drilling program at the Escobal Project and will conduct metallurgical and engineering studies to evaluate potential development scenarios for the Escobal Project.
About Tahoe Resources Inc.
Tahoe’s strategy is to develop the Escobal Project into a profitable silver operation and to position itself as a leading silver producer with high quality, low cost assets in the Americas. The Escobal Project team in Guatemala is approximately sixty-five employees including the Project Managing Director, Chief Geologist and exploration team, Community Relations Manager and group, and the Environmental Manager. The project drilling and development programs are continuing as planned. Tahoe’s website is www.tahoeresourcesinc.com.
Forward Looking Statements
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, which are also referred to as “forward-looking statements.” Wherever possible, words such as “plans,” “expects,” or “does not expect,” “budget,” “scheduled,” “estimates,” “forecasts,” “anticipate” or “does not anticipate,” “believe,” “intend,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. In particular, this news release contains statements related to the possible exercise of the over-allotment option and the effects thereof, as well as statements related to Tahoe’s plans for exploration and studies at the Escobal Project. Forward-looking statements address future events and conditions, which are subject to various risks and uncertainties and are described in Tahoe’s prospectus available for review at www.sedar.com.
Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management on the date of this news release made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, but which may prove to be incorrect. Tahoe believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things, the extent of exercise of the over-allotment option by the underwriters, Tahoe’s ability to carry on exploration and development activities, the timely receipt of required approvals, the price of silver and other metals, Tahoe’s ability to operate in a safe, efficient and effective manner and Tahoe’s ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Tahoe’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, many of which are beyond the Company’s control. These factors include any exercise of the over-allotment by the underwriters and the extent of such exercise, the availability of funds, the timing and content of work programs, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, country risks, project cost overruns or unanticipated costs and expenses, fluctuations in metal prices, currency fluctuations, and general market and industry conditions.
Although Tahoe has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There is no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Tahoe does not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws. For more information about the risks and challenges of Tahoe’s business, investors should review Tahoe’s prospectus available at www.sedar.com.
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For further information, please contact:
Tahoe Resources Inc.
Ira M. Gostin, Business Director
Tel: 775-825-8574 ext.225