Hecla Mining Company (NYSE: HL):
Not for Distribution to United States
Newswire Services or for Dissemination in the United States
Hecla Mining Company (NYSE: HL) (“Hecla”) announced today
that a wholly owned subsidiary of Hecla entered into a subscription
agreement to acquire ownership of 1,000,000 common shares
(“Shares”) of Dolly Varden Silver Corporation (“Dolly
Varden”).
Immediately prior to entering into the subscription agreement,
Hecla, through its wholly owned subsidiary Hecla Canada Ltd.
(“Hecla Canada”), controlled 4,478,087 Shares and an
aggregate of 1,351,762 warrants. Of those warrants, 1,250,000
warrants entitle Hecla Canada to acquire one additional Share each
at a price of $0.30 per Share and are exercisable for a period
ending September 30, 2018. The balance of 101,762 warrants entitle
Hecla Canada to acquire one additional Share each at an exercise
price of $0.70 per Share for a period ending July 26, 2018.
Assuming exercise of only the warrants held by Hecla Canada, Hecla
owned and controlled an aggregate of 5,829,849 Shares, or
approximately 15.2% of the Shares on a partially diluted basis.
As of September 6, 2017, pursuant to the ancillary rights
agreement between Hecla Canada and Dolly Varden made September 4,
2012 (the “ARA”), Hecla Canada agreed to acquire from Dolly
Varden in a private placement, an additional 1,000,000 Shares at a
price of $0.73 each. The Shares which Hecla Canada has agreed to
acquire will be issued as part of a larger private placement being
completed concurrently by Dolly Varden.
As a consequence, Hecla, through Hecla Canada, now controls or
is deemed to control 5,478,087 Shares, 1,250,000 warrants each
entitling the holder to acquire upon exercise one Share at an
exercise price of $0.30 per Share, and 101,762 warrants each
entitling the holder to acquire upon exercise one Share at an
exercise price of $0.70 per Share. Assuming exercise of only the
warrants held by Hecla Canada and completion of the concurrent
private placement by Dolly Varden, Hecla owns and controls or is
deemed to own and control an aggregate of 6,829,849 Shares, or
approximately 15.2% of the Shares on a partially diluted basis.
The Shares 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 Dolly Varden. It is the
intention of Hecla to evaluate its investment in Dolly Varden on a
continuing basis and such holdings may be increased or decreased in
the future.
For the purposes of National Instrument 62-103, the address of
Hecla is 6500 N. Mineral Drive, Suite 200, Coeur d’Alene, Idaho,
83815, USA.
About Hecla
Established in 1891, Hecla Mining Company is a leading low-cost
U.S. silver producer with operating mines in Alaska, Idaho and
Mexico and is a growing gold producer with an operating mine in
Quebec, Canada. The Company also has exploration and
pre-development properties in seven world-class silver and mining
districts in the U.S., Canada and Mexico, and an exploration office
and investments in early-stage exploration projects in Canada.
Cautionary Statements
Statements made which are not historical facts, such as
anticipated payments, litigation outcome (including settlement
negotiations), production, sales of assets, exploration results and
plans, 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 and regulatory 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. The
company 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 Dolly
Varden, please contact:
Hecla Mining CompanyJeanne DuPontCorporate Communications
CoordinatorInvestor and Public Relations1-800-HECLA91
(1-800-432-5291)hmc-info@hecla-mining.com
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version on businesswire.com: http://www.businesswire.com/news/home/20170908005136/en/
Hecla Mining CompanyJeanne DuPont, 1-800-HECLA91
(1-800-432-5291)Corporate Communications CoordinatorInvestor and
Public Relationshmc-info@hecla-mining.com
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