- A leading low-cost U.S silver producer, with a significant portfolio in silver and an emerging force in the gold industry, has entered into an agreement to acquire a junior-mid tier silver and gold producer as it continues to expand its footprint.
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Hecla Mining to acquire three high-grade Nevada gold mines with the acquisition of Klondex Mines (KLDX)
- Under the Transaction, Hecla will acquire Klondex for consideration of $462 million with a mix of cash and shares of Hecla common stock and the newly formed company (Klondex Canada).
- Klondex's shareholders will receive $2.47 per share in cash or shares of Hecla, which represents a 59% premium to Klondex's 30-day volume-weighted average price, as at March 16, 2018, on the NYSE American.
Hecla will also acquire seven large land positions in some of the safest and most prolific mining jurisdictions in the world.
The company will also generate a significant production base with highly prospective growth opportunities and cost reductions. The acquisition adds about 162,000 oz of annual gold equivalent production.
Upon completion of the transaction, Hecla will launch a significant exploration program at Fire Creek and at the prospective Hatter Graben discovery at Hollister.