Advertisement
Hecla Mining To Acquire All Of Alexco That It Does Not Already Own
(RTTNews) - Hecla Mining Co. (HL) and Alexco Resource Corp. (AXU, AXU.TO) announced Tuesday a definitive agreement for Hecla to acquire all of the outstanding common shares of Alexco that Hecla does not already own.
Each outstanding common share of Alexco will be exchanged for 0.116 of a share of Hecla common stock implying consideration of US$0.47 per Alexco common share and a premium of 23%. Hecla will issue approximately 18 million common shares to Alexco shareholders.
In addition, Hecla will provide interim financing to provide working capital and ensure the development and exploration at Keno Hill continues to be advanced and subscribe for additional common shares bringing its ownership stake to 9.9%.
Hecla has also entered into an agreement with Wheaton Precious Metals Corp. (WPM) to terminate its silver streaming interest at Alexco's Keno Hill property in exchange for $135 million of Hecla common stock conditional upon the completion of Hecla's acquisition of Alexco.
Upon completion of both transactions, Wheaton Precious and Alexco shareholders will own approximately 5.6% and 3.0%, respectively, of the outstanding common shares of Hecla.
The Board of Directors of Alexco and Hecla have both unanimously approved the transaction. The Board of Directors of Alexco unanimously recommends that Alexco shareholders vote in favor of the transaction.
The Alexco-Hecla and WPM-Hecla transactions are each subject to applicable regulatory approvals and customary closing conditions. It is anticipated that the acquisition expected to close later that month.
Swiss Market Ends On Firm Note
European Markets Snap Losing Streak, Close On Firm Note
U.S. Business Inventories Remain Unchanged For Second Straight Month
U.S. Homebuilder Confidence Modestly Improves In July
Philly Fed Index Surges To Five-Month High In July
U.S. Import Prices Inch Up 0.1% In June, Less Than Expected
U.S. Retail Sales Rebound Much More Than Expected In June
