Tahoe Offers Cash/Stock For Guatemala Silver

Canadian start-up miner Tahoe Resources is buying the Escobal silver project in Guatemala from subsidiaries of Goldcorp for $505m. The price for the pre-development project includes a minimum of $230m in cash and 40% of the fully diluted Tahoe shares issued through a scheduled IPO. Tahoe announced Monday that it has filed a preliminary prospectus with Canadian authorities to launch an IPO through GMP Securities as sole bookrunner and Genuity Capital Markets. Funds raised will be used for the cash portion of the Escobal purchase as well as engineering studies and exploration. Closing of the transaction is anticipated on or about June 8. Tahoe is a start- company that aims to acquire, explore and develop precious metals resource properties in the Americas.