Palmarejo Silver and Gold Corporation

Palmarejo Silver and Gold Corporation

November 23, 2007 11:53 ET

Palmarejo Silver and Gold Corporation Announces its Financial Results for the First Quarter Ended September 30, 2007

LONGUEUIL, QUEBEC--(Marketwire - Nov. 23, 2007) - Palmarejo Silver and Gold Corporation (the "Company") announces that its Interim Consolidated Financial Statements and Management's Discussion & Analysis for the first quarter ended September 30, 2007 have been filed on SEDAR ( They are also available through Marketwire's website at and on the Company's website (

Financial highlights (in Canadian dollars) for the quarter include capitalized project development expenditures of $29.2 million on the Company's Palmarejo project located in the Temoris District of Chihuahua in Mexico, including $18.9 million for mining equipment under capital lease and various construction and engineering activities, such as road upgrade, earthworks, camp construction, fabrication and assembly of various mill components and modification of the ball and SAG mills. The Company also invested $6.3 million in exploration expenditures on its Palmarejo, Guadalupe and other silver-gold projects located in the Temoris District of Chihuahua in Mexico, including $3.1 million for drilling activities.

At September 30, 2007, the working capital deficit totaled $22.9 million, including an amount of $1.0 million borrowed under a credit facility and an amount of $13.4 million due to a wholly-owned subsidiary of Bolnisi Gold NL ("Bolnisi"), the Company's majority shareholder, and capital lease obligations of $7.8 million. During the quarter, Bolnisi negotiated a US$20.0 million credit facility with Macquarie Bank Limited to fund ongoing project development. As funds are required to continue developing the Palmarejo Project, Bolnisi will advance required funds to the Company.

During the quarter, the Company recorded an impairment charge of $1.0 million related to ABCPs held. Given the uncertainty regarding the outcome of the Montreal Proposal, the fair values estimated by the Company may change materially in subsequent periods.

At November 22, 2007, the Company has 93,114,838 common shares issued and outstanding and 2,185,900 outstanding stock options at an exercise price varying between $1.00 and $3.90 and expiring by December 2010. At the same date, Bolnisi owns 66,855,237 common shares, representing 71.8% of the total number of issued and outstanding common shares of the Company. At September 30, 2007, the Company had 3,947,368 outstanding warrants exercisable at a price of $12.50 at any time prior to October 19, 2007. None of these warrants were exercised prior to the maturity date and consequently expired.

In the proposed merger agreement between the Company, Bolnisi and Coeur d'Alene Mines Corporation ("Coeur"), interim court orders have been rendered in Canada and Australia. A shareholders' meeting of Coeur has been convened to be held on December 3, 2007, while Bolnisi and the Company's shareholders' meetings will be held on December 4, 2007. Assuming that the required shareholders and final court approvals are received, the companies expect the transactions to be completed on or about December 21, 2007.

Palmarejo Silver and Gold Corporation is a silver and gold exploration company with projects in Mexico. Additional information is available on SEDAR and on the Company's website.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information