saidMarch 31 that its Chilean subsidiary Compania Minera Cerro Bayo Ltd. has repurchasedCoeur Mining Inc.unit's 2% net smelter return royalty on the silver and gold production ofMandalay's CerroBayo mine, effectively cancelling the royalty.
Totalconsideration was US$4 million and 2.5 million Mandalay shares issued at aprice of 89 Canadian cents per share.
"Webelieve this acquisition to be a prudent use of capital at this time and [we]welcome Coeur as a shareholder going forward," said Mark Sander, presidentand CEO of Mandalay.
With thetransaction, Mandalay's obligation to pay Coeur its 2% NSR royalty ends withthe payment for 2016's first quarter production.
Coeur'sroyalty was established by its sale and purchase agreement with Mandalay forthe Cerro Bayo mine, which closed on Aug. 10, 2010.