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Klondex Mines: Hecla Mining completes acquisition of Klondex

As reported on July 12, the proposed acquisition received approval from Klondex shareholders

Hecla has completed its acquisition of Klondex

Gold and silver miner Hecla Mining has completed its acquisition of Nevada-focused Klondex Mines Ltd (TSE:KDX,NYSE:KLDX).

As reported on July 12, acquisition, which was announced in March this year, received approval from Klondex shareholders.

"With this acquisition, Hecla now has three high-grade mines in Nevada, one of the best mining districts in the world," said Phillips S. Baker Jr., the president and chief executive at Hecla.

"These assets immediately add production and cash flow and because they are a good fit with Hecla's expertise, we believe there is significant opportunity for improvement in the mines' productivity and consistency.

"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."

The consideration for Klondex was around US$153mln and 75mln Hecla shares.

New listing

As well as what they receive for the Hecla acquisition, Klondex shareholders will also receive 0.125 of a share of Havilah Mining Corp, a newly formed firm retaining Klondex's Canadian operations.

Havilah has been approved to list on the TSX venture exchange, with trading expected to begin at market open on July 25 this year.

Klondex has also received approval to delist its common shares from the Toronto Stock Exchange, expected to occur also on July 25.

As part of the transaction, Hecla subscribed for over 3.5mln shares of Havilah at C$2.61 per share for a gross purchase price of around C$9.24mln.

Shares of Havilah acquired by Hecla represent 13.46% of the outstanding shares of Havilah, after giving effect to the subscription.

Quick facts: Klondex Mines Ltd

Price: - CAD

Market: TSX
Market Cap: -

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