Hecla plans to buy ATAC Resources for C$31m
US silver miner Hecla Mining has entered into a nonbinding letter of intent to acquire Vancouver-based exploration company ATAC Resources and its Rackla and Connaught projects, in Yukon, Canada.
Hecla will acquire all the issued and outstanding shares of ATAC for C$0.14 a share for a consideration of C$31-million, payable in stock.
ATAC CEO Graham Downs says Hecla is the “ideal acquirer” for the Rackla gold property, given its adjacent Keno Hill mining project.
“As an established and successful multi-asset producer, Hecla has the resources, strengths and experience to meaningfully advance the known targets at Rackla and Connaught,” states Downs.
The remaining ATAC assets will be spun out into a copper-focused exploration company, SpinCo, which will hold all ATAC’s rights and interests in the Idaho Creek, Catch, Rosy and PIL project, as well as ATAC’s cash balance following the proposed transaction.
Hecla will make a C$2-million strategic investment into Spinco.
The company has entered into an exclusivity period of 30 days with ATAC.
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