Hecla Mining Agrees to Acquire Rest of Alexco
July 05 2022 - 7:32AM
Dow Jones News
By Adriano Marchese
Hecla Mining Co. said Tuesday that it has agreed to acquire all
shares of Yukon-based Alexco Resource Corp. that it currently
doesn't own, and that it will pay Wheaton Precious Metals Corp.
$135 million in its own shares for it to terminate its silver
streaming interest with Alexco.
The U.S.-based precious-metals mining company said it will issue
18 million of its common shares for each Alexco common share,
implying a consideration of 47 cents per Alexco share. Hecla said
this represents a premium of 23% based on Alexco's five-day volume
weighted average price on the New York Stock Exchange on July
1.
At Friday's closing price of $4.01, the value of the shares
would be valued at around $72.2 million.
The transaction is expected to close in September.
Additionally, the company said it has entered into an agreement
with Wheaton Precious Metals to terminate its silver streaming
interest at Alexco's Keno Hill property in the Yukon in exchange
for $135 million of its shares.
"Silver is a critical element to decarbonize the economy and the
need for domestic supply is growing. Acquiring Keno Hill allows
Hecla to further meet this need with a secure high-grade silver
development and exploration project that has a small environmental
footprint," Hecla President and Chief Executive Phillips Baker Jr.
said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
July 05, 2022 07:17 ET (11:17 GMT)
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