Item 7.01 Regulation FD Disclosure
On July 20, 2022, representatives of Hecla Mining Company
(“Hecla”) are scheduled to make a presentation (the “Presentation”)
in Coeur d’Alene, Idaho to certain analysts. As part of the
Presentation, Phillips S. Baker, Jr., President and Chief Executive
Officer of Hecla, will discuss Hecla’s pending acquisition of
Alexco Resource Corp. (“Alexco”). The Presentation will include the
slides attached as Exhibit 99.1 (the “Acquisition Slides”).
As previously announced, on July 4, 2022, Hecla entered into
an Arrangement Agreement (the “Alexco Agreement”) with Alexco.
Under the terms of the Alexco Agreement, Hecla will acquire all of
the outstanding shares of Alexco, and Alexco’s shareholders will
receive 0.116 of a share of Hecla common stock per Alexco share,
representing total consideration with a value of US$0.47 per Alexco
share (based on the companies’ 5-day volume weighted average price on
the New York Stock Exchange (“NYSE”) and NYSE American on
July 1, 2022). As part of the Alexco Agreement, Hecla has
provide a loan to Alexco in the amount of up to $30 million to
bridge Alexco’s operations from signing to closing; and
subscribe for and purchase 8,984,100 Alexco common shares at
CDN$0.50 per share, having an aggregate value of US$3,593,640.
Following such purchase, Hecla and its affiliates will own 9.9% of
the outstanding Alexco shares.
Concurrently with entering into the Alexco Agreement, Hecla entered
into a Stream Termination Agreement (the “WPM Agreement” and
together with the Alexco Agreement, the “Agreements”) with Wheaton
Precious Metals Corp. (“WPM”). Under the WPM Agreement, after the
closing of the Alexco acquisition, Hecla will issue shares of its
common stock valued at US$135 million based on Hecla’s
average price immediately prior to the closing in exchange for the
termination of WPM’s silver streaming interest in Alexco’s Keno
Hill silver mine located in the Yukon Territory, Canada.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 7.01 and
Exhibit 99.1 is being furnished and shall not be deemed to be
“filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or otherwise subject
to the liability of that section, and shall not be incorporated by
reference into any of the Company’s filings or other document filed
under the Securities Act of 1933, as amended, or the Exchange Act,
except as shall be expressly set forth by specific reference in
Item 9.01 - Financial Statements and Exhibits