Hecla Confirms Letter of Intent to Acquire ATAC Resources
February 21 2023 - 6:00AM
Business Wire
Hecla Mining Company (NYSE:HL) (the “Company”) acknowledges that
it has entered into a non-binding Letter of Intent (the “LOI”) to
acquire ATAC Resources Ltd. (“ATAC”) and its Rackla and Connaught
projects in Yukon, Canada.
Under the proposed transaction, the Company would acquire all of
the issued and outstanding shares of ATAC for C$0.14 per ATAC
share, for a consideration of C$31 million, payable in shares of
Hecla common stock. The Company intends to make a C$2.0 million
strategic investment into a new exploration company (“Spinco”)
which would hold the remaining assets of ATAC. The Company would
also acquire (i) a right of first refusal to acquire any or all of
the Spinco Assets, and (ii) a number of units of Spinco (the
“Spinco Units”) such that it would own 19.9% of Spinco’s issued and
outstanding common shares following completion of the strategic
investment. Each Spinco Unit would contain one common share of
Spinco (a “Spinco Share”) and one warrant (a “Spinco Warrant”).
Each Spinco Warrant would entitle the Company to purchase one
additional Spinco Share for a period of five years at the same
price as a Spinco Unit.
The key provisions of the LOI are non-binding and any
acquisition would only occur pursuant to a definitive agreement
with customary representations, warranties, covenants and
conditions to closing. There can be no assurance that a definitive
agreement will be entered into or that the proposed transaction
will be consummated with ATAC. The Company has entered into an
exclusivity period of 30 days with ATAC.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is the largest
silver producer in the United States. In addition to operating
mines in Alaska, Idaho, and Quebec, Canada, the Company is
developing a mine in the Yukon, Canada, and owns a number of
exploration and pre-development projects in world-class silver and
gold mining districts throughout North America.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws, including
Canadian securities laws. Words such as “may”, “will”, “would”,
“should”, “expects”, “intends”, “projects”, “believes”,
“estimates”, “targets”, “anticipates” and similar expressions are
used to identify these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230221005347/en/
Anvita Mishra Patil, Vice President – Investor Relations and
Treasurer Cheryl Turner, Communications Coordinator
800-HECLA91 (800-432-5291) Investor Relations Email:
hmc-info@hecla-mining.com Website: www.hecla.com
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