Tahoe Resources, Rio Alto Mining To Combine Respective Businesses - Quick Facts

(RTTNews) - Tahoe Resources Inc. (THO.TO, TAHO) and Rio Alto Mining Ltd. (RIO.TO, RIOM) have agreed to combine their respective businesses and create a new, leading intermediate precious metals producer with several value-enhancing growth opportunities.

The combined company offers shareholders significant low cost production from Escobal silver mine in Guatemala and the established La Arena gold mine in Peru, in addition to long-term sustainable growth fueled by the development of the Shahuindo gold project with first production expected in early 2016. With strong operating margins and low capital risk, the combined company will boast industry-leading free cash flow generation, superior financial returns and a strong balance sheet with zero net debt. Moreover, the combined company will benefit from a top-tier management team focused on delivering long-term shareholder returns.

As part of the Arrangement Agreement, all of the Rio Alto issued and outstanding common shares will be exchanged on the basis of 0.227 of a Tahoe common share and C$0.001 in cash per Rio Alto share. Upon completion, existing Tahoe and Rio Alto shareholders will hold around 65 percent and 35 percent of the combined company, respectively.

GMP Securities L.P. acted as financial advisor to Rio Alto and Davis LLP acted as its legal advisor. Scotiabank has provided a fairness opinion to the Independent Committee and Torys LLP acted as legal advisor to the Independent Committee.