Hecla Mining Company (“Hecla”) is providing an update regarding
its investment in common shares (“Shares”) and warrants of Dolly
Varden Silver Corporation (the “Issuer”).
On July 26, 2016, Hecla’s indirect wholly owned subsidiary
1080980 B.C. Ltd. (the “Offeror”), formally terminated its
take-over offer (the “Offer”) commenced on July 8, 2016, for all of
the issued and outstanding Shares not already owned by Hecla and
its affiliates. No Shares were tendered or taken up under the
Offer.
As of July 25, 2016, Hecla, through its wholly owned subsidiary
Hecla Canada Ltd. (“Hecla Canada”), controlled 2,620,291 Shares and
1,250,000 warrants. Each warrant entitles Hecla Canada to acquire
one additional Share at a price of $0.30 per Share and is
exercisable for a period ending September 30, 2018. Assuming
exercise of only the Warrants held by Hecla Canada, Hecla owned and
controlled 3,870,291 Shares, or approximately 19.8% of the Shares
on a partially diluted basis.
As of July 26, 2016, pursuant to the ancillary rights agreement
between Hecla Canada and the Issuer made September 4, 2012 (the
“ARA”), Hecla Canada acquired from the Issuer, in a private
placement, an additional 1,857,796 Shares and 101,762 warrants
entitling Hecla Canada to acquire upon exercise one Share at an
exercise price of $0.70 per Share for a period of two years from
the date of issuance. The Shares that were acquired were purchased
at a price of $0.62 each for an aggregate purchase price of
$1,151,833.52. The warrants that were acquired were purchased at a
price of $0.43 each for an aggregate purchase price of $43,757.66.
Therefore, the total purchase price for all of the securities
acquired was $1,195,591.18.
As a consequence, Hecla, through Hecla Canada, now controls
4,478,087 Shares, 1,250,000 warrants entitling the holder to
acquire upon exercise one Share at an exercise price of $0.30 per
Share, and 101,762 warrants entitling the holder to acquire upon
exercise one Share at an exercise price of $0.70 per Share.
Assuming exercise of only the warrants held by Hecla Canada, Hecla
owns and controls an aggregate of 5,829,849 Shares, or
approximately 18.5% of the Shares on a partially diluted basis.
As a result of the termination of the Offer, the support
agreements made between Hecla Canada and each of Robert Gipson and
Nellie Gipson, who are registered and beneficial holders of in
aggregate 2,500,000 Shares and 1,250,000 warrants, have also been
terminated.
Hecla and its affiliates intend to hold their Shares and
warrants for investment purposes. Hecla and its affiliates may,
depending on market and other conditions, increase or decrease
their holdings of Shares and warrants or other securities of the
Issuer, whether in the open market, by privately negotiated
agreements or otherwise.
Hecla may also from time to time exercise its rights under the
ARA to maintain its pro-rata shareholding in the Issuer.
Hecla’s head office is at 6500 North Mineral Drive, Suite 200,
Coeur d’Alene, Idaho 83815-9408. The Issuer’s address is 970 - 800
West Pender Street, Vancouver, British Columbia V6C 2V6.
About Hecla
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska, Idaho
and Mexico, and is a growing gold producer with an operating mine
in Quebec, Canada. The Company also has exploration and
pre-development properties in six world-class silver and gold
mining districts in the U.S., Canada, and Mexico, and an
exploration office and investments in early-stage silver
exploration projects in Canada.
Cautionary Note Regarding Forward-Looking Statements
Statements made or information provided in this news release
that are not historical facts, such as anticipated production,
sales of assets, exploration results and plans, costs, and prices
or sales performance are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995 and
“forward-looking information” within the meaning of Canadian
securities laws. Words such as “may,” “will,” “should,” “expects,”
“intends,” “projects,” “believes,” “estimates,” “targets,”
“anticipates” and similar expressions are used to identify these
forward-looking statements. Forward-looking statements involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected, anticipated, expected or
implied. These risks and uncertainties include, but are not limited
to, metals price volatility, volatility of metals production and
costs, litigation, regulatory and environmental risks, operating
risks, project development risks, political risks, labor issues,
ability to raise financing and exploration risks and results. Refer
to the Company’s Form 10-K and 10-Q reports for a more detailed
discussion of factors that may impact expected future results. The
Company undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by
law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160727005471/en/
Hecla Mining CompanyMike Westerlund, 800-HECLA91
(800-432-5291)hmc-info@hecla-mining.comVice President - Investor
Relations
Hecla Mining (NYSE:HL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hecla Mining (NYSE:HL)
Historical Stock Chart
From Apr 2023 to Apr 2024