By Adriano Marchese
Hecla Mining Co. said Tuesday that it has agreed to acquire all shares of Yukon-based Alexco Resource Corp. that it currently doesn't own, and that it will pay Wheaton Precious Metals Corp. $135 million in its own shares for it to terminate its silver streaming interest with Alexco.
The U.S.-based precious-metals mining company said it will issue 18 million of its common shares for each Alexco common share, implying a consideration of 47 cents per Alexco share. Hecla said this represents a premium of 23% based on Alexco's five-day volume weighted average price on the New York Stock Exchange on July 1.
At Friday's closing price of $4.01, the value of the shares would be valued at around $72.2 million.
The transaction is expected to close in September.
Additionally, the company said it has entered into an agreement with Wheaton Precious Metals to terminate its silver streaming interest at Alexco's Keno Hill property in the Yukon in exchange for $135 million of its shares.
"Silver is a critical element to decarbonize the economy and the need for domestic supply is growing. Acquiring Keno Hill allows Hecla to further meet this need with a secure high-grade silver development and exploration project that has a small environmental footprint," Hecla President and Chief Executive Phillips Baker Jr. said.
Write to Adriano Marchese at email@example.com
(END) Dow Jones Newswires