https://www.miningweekly.com

Hecla wraps up Klondex acquisition, Havilah to list this week

23rd July 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Newly formed Havilah Mining, which was created following the spinout of Klondex Mines’ Canadian assets, will list on the TSX-V this week, US-based precious metals producer Hecla Mining said on Monday, announcing the completion of its Klondex acquisition.

Havilah will own the True North mining complex, near the town of Bissett, in Manitoba. True North is an underground mining operation consisting of several underground narrow-vein gold deposits, with a 2 500 t/d mill.

The listing of Havilah will occur on July 25 and Hecla has subscribed for 3.54-million common shares on a private placement basis for gross proceeds of C$9.24-million, giving it a 13.46% interest in the new entity. Hecla stated that the shareholding was acquired for investment purposes only.

Hecla acquired the outstanding common shares of Klondex for about $153-million and 75-million shares of Hecla common stock, extinguishing all rights to acquire Klondex common shares. Klondex shareholders who opted for a scrip transaction will receive 0.6272 of a Hecla share in exchange for their Klondex shares and those who opted for a combination of cash and share will receive $0.8411 in cash and 0.4136 of a Hecla share. Shareholders who elected to receive a cash consideration were subject to proration and will receive $0.8867 in cash and 0.4020 of a Hecla share.

In addition, Klondex shareholders will also receive 0.125 of a common share of Havilah.

The completion of the Klondex acquisition has added three new high-grade mines in Nevada to Hecla’s existing portfolio of operating mines in Alaska, Idaho and Mexico. President and CEO  Phillips S Baker said in a statement that Hecla would immediately benefit from production and cash flow from the three newly acquired Nevada mines and that the group believed that there was significant opportunity for improvement in the mines’ productivity and consistency.

The three mines are Fire Creek, Midas and Hollister.

“We welcome the former Klondex shareholders and employees to Hecla, as we continue to grow into the largest and strongest company in its long history,” Baker added.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION