NYSE-listed Hecla Mining has cemented its position in the Yukon with the acquisition of ATAC Resources, a company with properties stretching over 1 830 km2 in Canada’s westernmost territory.
Hecla on Monday announced the completion of the acquisition, having paid $18.8-million in common stock for the company.
“With the ATAC acquisition, we continue to execute our strategy of acquiring large land packages with significant exploration potential in favourable mining jurisdictions,” said president and CEO Phillips Baker.
“The Rackla and Connaught properties in the Yukon are a massive land package of over 700 square miles, almost half the size of Rhode Island, with identified gold, silver, and base metal mineralization.
“As a result of previous investment in exploration by ATAC, Hecla is not obligated for the next decade to make significant expenditures to maintain control of the land package, so while we will advance the exploration as quickly as possible, we will have flexibility on our pace of spending,” Baker said.
He stated that the acquisition further cemented its position in Yukon, with the Keno Hill mine going into production in the third quarter.
Keno Hill is expected to produce more than 2.5-million ounces of silver in 2023 and to become Canada's biggest and highest-grade primary silver mine.