Hecla Completes Acquisition of ATAC Resources and Restarts Casa Berardi
July 10 2023 - 6:30AM
Business Wire
Hecla Mining Company (NYSE:HL) (“Hecla”) and ATAC Resources Ltd.
(TSX:ATC) (“ATAC”) announced today the completion of the ATAC
acquisition.
“With the ATAC acquisition, we continue to execute our strategy
of acquiring large land packages with significant exploration
potential in favorable mining jurisdictions,” said Phillips S.
Baker, Jr., Hecla President & CEO. “The Rackla and Connaught
properties in the Yukon are a massive land package of over 700
square miles (1830 square kilometers), 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 continued, “The acquisition further cements our position
in the Yukon, with our 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 largest and
highest-grade primary silver mine. We look forward to continuing to
build our relationships with the Na-Cho Nyak Dun and Tr’ondek
Hwech’in Han First Nations and the Yukon Territory through our work
at Keno Hill and the Rackla and Connaught Properties.”
Details of ATAC transaction
Hecla acquired all the outstanding shares of ATAC for total
consideration of approximately US$18.8 million in Hecla common
stock with the issuance of 3,676,904 shares to ATAC shareholders
based on the share exchange ratio of 0.166 of Hecla share for each
ATAC common share. As part of the acquisition, Hecla acquired
5,502,956 units consisting of (i) shares of Cascadia Minerals Ltd.
(“Cascadia”) representing a 19.9% stake, and (ii) full warrants
with a five-year term for a C$2 million cash investment. Cascadia
will be managed by the former management of ATAC, who will explore
specific properties in the Yukon and British Columbia. Hecla will
have the right to appoint two directors to Cascadia’s board.
Restart of Casa Berardi Mine
Hecla also announced that Casa Berardi successfully restarted
operations on June 29th following the partial lifting of Quebec’s
ban on access to the road to the mine. All mining and processing
activities have resumed normally.
The impact of the suspension and restart on Casa Berardi’s
production and cost guidance are expected to be updated in the
second quarter earnings release.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest
silver producer in the United States. In addition to operating
mines in Alaska, Idaho, and Quebec, Canada, the Company is
developing a mine in the Yukon, Canada, and owns several
exploration and pre-development projects in world-class silver and
gold mining districts throughout North America.
Cautionary Statements to Investors on Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws, including
Canadian securities laws. When a forward-looking statement
expresses or implies an expectation or belief as to future events
or results, such expectation or belief is expressed in good faith
and believed to have a reasonable basis. However, such statements
are subject to risks, uncertainties, and other factors, which could
cause actual results to differ materially from future results
expressed, projected, or implied by the forward-looking statements.
Forward-looking statements often address our expected future
business and financial performance and financial condition and
often contain words such as “anticipate,” “intend,” “plan,” “will,”
“could,” “would,” “estimate,” “should,” “expect,” “believe,”
“project,” “target,” “indicative,” “preliminary,” “potential” and
similar expressions. Forward-looking statements in this news
release may include, without limitation: (i) Keno Hill silver
production is expected to exceed 2.5 million ounces in 2023, (ii)
the Keno Hill mine is expected to be the largest and highest grade
primary silver mine in Canada and (iii) Casa Berardi’s production
and cost guidance are expected to be updated in the second quarter
earnings release.
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version on businesswire.com: https://www.businesswire.com/news/home/20230710246613/en/
For further information, please contact:
Anvita M. Patil Vice President - Investor Relations and
Treasurer
Cheryl Turner Communications Coordinator
800-HECLA91 (800-432-5291) Investor Relations Email:
hmc-info@hecla-mining.com Website: www.hecla-mining.com
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