Hecla Increases Interest in Canamex Resources Corp.
September 30 2014 - 5:02PM
Business Wire
Hecla Mining Company (NYSE:HL) announced today that a wholly
owned subsidiary of Hecla has entered into a subscription agreement
pursuant to which it has agreed to acquire 3,095,238 units of
Canamex Resources Corp. (“Canamex”). Each unit is comprised
of one common share and one-half of a common share purchase warrant
(the “Units”). Each common share purchase warrant is
exercisable for a period of two years from the date of issuance at
a price of $0.30 per share. The 3,095,238 common shares comprised
in the Units to be acquired by Hecla Canada represent 2.4% of the
outstanding common shares of Canamex upon completion of the private
placement to Hecla (which itself will form part of a larger private
placement which will be completed concurrently). The 1,547,619
common share purchase warrants comprised in the Units to be
acquired by Hecla represent 42.6% of the common share purchase
warrants to be issued by Canamex as part of the larger private
placement. The Units will be issued to Hecla at a price of $0.21
per Unit for total gross proceeds to Canamex from Hecla of
$650,000.
With the completion of the transactions contemplated by the
subscription agreement referred to above, Hecla will exercise
control over 17,237,149 common shares representing 13.3% of the
outstanding common shares of Canamex and 1,547,619 common share
purchase warrants. Assuming the exercise of only those common share
purchase warrants held by Hecla, Hecla would exercise control over
18,784,768 common shares of Canamex or 14.4% of Canamex’s common
shares.
The ancillary rights agreement (the “Ancillary Rights
Agreement”) between Hecla and Canamex dated November 21, 2012,
continues in effect. Pursuant to the Ancillary Rights Agreement,
for so long as Hecla holds more than a 10% interest in Canamex
(calculated in accordance with that agreement), Hecla has: (a) a
right to nominate one person to Canamex’s board of directors, (b) a
right to nominate one person to Canamex’s technical committee, and
(c) a pre-emptive right to participate in any future proposed
equity offering of Canamex in order to maintain its pro rata
interest.
The common shares and common share purchase warrants comprised
in the Units will be acquired for investment purposes by Hecla.
Hecla does not have any present intention to acquire ownership of,
or control over, additional securities of Canamex. It is the
intention of Hecla to evaluate its investment in Canamex on a
continuing basis and such holdings may be increased or decreased in
the future.
In completing this investment Hecla is relying on Subsection
2.3(1) of Canadian National Instrument 45-106 – Prospectus and
Registration Exemptions as Hecla is an accredited investor. For the
purposes of Canadian National Instrument 62-103, the address of
Hecla is 6500 N. Mineral Drive, Suite 200, Coeur d’Alene, Idaho,
83815, USA.
About Hecla
Hecla Mining Company (NYSE:HL) is a leading low-cost U.S.
silver producer with operating mines
in Alaska and Idaho, and is a growing gold producer
with an operating mine in Quebec, Canada. The Company also has
exploration and pre-development properties in five world-class
silver and gold mining districts in the U.S., Canada,
and Mexico, and an exploration office and investments in
early-stage silver exploration projects in Canada.
.Cautionary Statements
Statements made which are not historical facts, such as
anticipated payments, litigation outcome, production, sales of
assets, exploration results and plans, prospects and opportunities
including reserves, resources, and mineralization, costs, and
prices or sales performance are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as “may”, “will”, “should”, “expects”, “intends”,
“projects”, “believes”, “estimates”, “targets”, “anticipates” and
similar expressions are used to identify these forward-looking
statements. Forward-looking statements involve a number of risks
and uncertainties that could cause actual results to differ
materially from those projected, anticipated, expected or implied.
These risks and uncertainties include, but are not limited to,
metals price volatility, volatility of metals production and costs,
environmental and litigation risks, operating risks, project
development risks, political and regulatory risks, labor issues,
ability to raise financing and exploration risks and results. Refer
to the company's Form 10-K and 10-Q reports for a more detailed
discussion of factors that may impact expected future results.
Hecla undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by
law.
For further information, or to obtain a copy of the early
warning report filed in connection with Hecla’s holdings in
Canamex, please contact:
Hecla Mining CompanyJeanne DuPontCorporate Communications
CoordinatorInvestor and Public RelationsDirect Main: 1-800-HECLA91
(1-800-432-5291)hmc-info@hecla-mining.comwww.hecla-mining.com
Hecla Mining CompanyJeanne DuPontCorporate Communications
CoordinatorInvestor and Public RelationsDirect Main: 1-800-HECLA91
(1-800-432-5291)hmc-info@hecla-mining.comwww.hecla-mining.com
Hecla Mining (NYSE:HL)
Historical Stock Chart
From Apr 2024 to May 2024
Hecla Mining (NYSE:HL)
Historical Stock Chart
From May 2023 to May 2024