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THE UNITED STATES/
COEUR D'ALENE, Idaho,
Feb. 23, 2022 /CNW/ - Hecla Mining
Company (NYSE: HL) ("Hecla") announced today that
on February 22, 2022, a wholly owned subsidiary of
Hecla entered into the
Subscription Agreement to acquire 9,048,539 Common Shares of Dolly
Varden Silver Corporation ("Dolly
Varden"). The transactions under the Subscription
Agreement are scheduled to be completed on February 25, 2022, conditional upon and
immediately after Dolly Varden's
issuance of 76,504,590 Shares to Fury Gold Mines Ltd.
("Fury") in connection with the acquisition by Dolly Varden of the Homestake Ridge gold-silver
project. The 9,048,539 Shares subscribed for by Hecla represent approximately 6.91% of the
131,012,861 Shares outstanding immediately prior to when the
Subscription Agreement was entered into (calculated on an undiluted
basis).
Prior to entering into the Subscription Agreement, Hecla held 13,869,729 Shares representing
10.59% of the Shares and 940,948 warrants to acquire additional
Shares. After completion of the subscription and the issuance
of Shares to Fury, Hecla will hold
22,918,268 Shares, representing 10.58% of the 216,565,990 Shares
(calculated on an undiluted basis), and 940,948 warrants. Assuming
exercise of only warrants held by Hecla (and the issuance of Shares to Fury),
Hecla is deemed to hold 23,859,216
Shares representing 10.97% of the Shares on a partially diluted
basis. The change in Hecla's
percentage ownership is therefore a decrease of 0.01% on an
undiluted basis and 0.25% 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 Canadian National Instrument 62-103, the
address of Hecla is 6500 N.
Mineral Drive, Suite 200, Coeur d'Alene, Idaho, 83815, USA.
About Hecla
Founded in 1891, Hecla Mining Company (NYSE: HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska, Idaho, and Mexico and is a gold producer with operating
mines in Quebec, Canada and
Nevada. The Company also has
exploration and pre-development properties in eight 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.
SOURCE Hecla Mining Company