Hecla Mining Company (NYSE: HL) recently announced its acquisition of Alexco Resource Corp. (NYSE American: AXU) in an all-stock transaction valued at approximately $152 million. The acquisition will add Alexco\u2019s high-grade silver and gold assets to Hecla\u2019s portfolio. Hecla Mining is a leading silver and gold producer with operations in the United States and Canada. <\/p>\n\n\n\n
The company\u2019s flagship property is the Greens Creek Mine in Alaska, which produces silver, gold, zinc and lead. Hecla also owns and operates the Lucky Friday Mine in Idaho, which produces silver and lead. Hecla has a long history of profitable operations and is one of the oldest and largest silver and gold producers in North America. Alexco Resource is a Canadian-based exploration and development company focused on the exploration and development of silver and gold projects in the Yukon Territory.<\/p>\n\n\n\n
The company\u2019s main asset is the Keno Hill Silver District, which is comprised of five high-grade silver and gold mines. Alexco also owns the Flame & Moth and Bermingham properties, which are located in the Yukon. The acquisition of Alexco will add high-grade silver and gold assets to Hecla\u2019s portfolio. Alexco\u2019s Keno Hill Silver District is one of the highest-grade silver and gold districts in the world, with grades up to 2,000 g\/t silver and 12 g\/t gold. The district is also well-positioned for exploration and development, with numerous targets and potential for new discoveries.<\/p>\n\n\n\n
Hecla plans to fund the acquisition with a combination of cash and stock. Hecla will pay $1.50 per share for Alexco and will issue approximately 10.1 million shares of Hecla common stock. The transaction is expected to close in the second quarter of 2021 and is subject to regulatory approvals and other customary closing conditions. Hecla CEO Phillips S. Baker, Jr. said, \u201cThe acquisition of Alexco is an important step in Hecla\u2019s growth strategy and provides us with a high-grade silver and gold district that is well-positioned for exploration and development.<\/p>\n\n\n\n
We are excited to welcome Alexco\u2019s employees and shareholders to the Hecla family.\u201d The acquisition of Alexco will significantly increase Hecla\u2019s silver production and reserves. Alexco\u2019s silver production is expected to increase Hecla\u2019s total silver production by approximately 20%. Alexco\u2019s proven and probable silver reserves are estimated to be 6.6 million ounces. Hecla also expects to benefit from Alexco\u2019s exploration potential. Alexco\u2019s Keno Hill Silver District is a well-known and highly-prospective district. The district has numerous targets and potential for new discoveries. <\/p>\n\n\n\n
Hecla plans to explore and develop the district and leverage its expertise in mining and exploration to unlock the potential of the district. The acquisition of Alexco is expected to be immediately accretive to Hecla\u2019s earnings. Hecla estimates that the acquisition will add approximately $0.02 to $0.03 per share to its earnings in 2021. The acquisition of Alexco will be an important step in Hecla\u2019s growth strategy. Hecla plans to use the acquisition to expand its silver and gold production and reserves and to leverage its expertise in mining and exploration to unlock the potential of the district. The acquisition is expected to be immediately accretive to Hecla\u2019s earnings and will add significant value to Hecla\u2019s shareholders.<\/p>\n","protected":false},"excerpt":{"rendered":"
Hecla Mining Company (NYSE: HL) recently announced its acquisition of Alexco Resource Corp. (NYSE American: AXU) in an all-stock transaction valued at approximately $152 million. The acquisition will add Alexco\u2019s high-grade silver and gold assets to Hecla\u2019s portfolio. Hecla Mining is a leading silver and gold producer with operations in the United States and Canada….<\/p>\n","protected":false},"author":1,"featured_media":298,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[],"class_list":["post-297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-south-america"],"_links":{"self":[{"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/posts\/297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/comments?post=297"}],"version-history":[{"count":1,"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/posts\/297\/revisions"}],"predecessor-version":[{"id":299,"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/posts\/297\/revisions\/299"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/media\/298"}],"wp:attachment":[{"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/media?parent=297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/categories?post=297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.greatmining.com\/mining-news\/wp-json\/wp\/v2\/tags?post=297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}