Hecla signs definitive agreement to acquire ATAC Resources

Under the proposed transaction, the Company’s subsidiary would acquire all of the issued and outstanding shares of ATAC for a consideration of CAN$31 million, or 0.0166 Hecla share per share of ATAC (consisting of 3 693 516 common shares of the Company in aggregate). Hecla would also invest CAN$2 million in seed capital, equal to a 19.9% interest, for a new exploration company Cascadia Minerals Ltd., which would be spun-out with certain properties to ATAC’s shareholders as part of the transaction. The total consideration to the ATAC shareholders, including the implied value for the shares in Cascadia (CAN$0.036/share), is CAN$39 million. The Hecla shares provide ATAC shareholders with a premium of 66% based on ATAC’s 20-day volume-weighted average price of CAN$0.0845 as of February 17, 2023, the last trading day preceding announcement of the letter of intent, or a 109% premium when including the value of Cascadia shares received.

The Transaction would give ATAC shareholders ownership in the largest silver producer in the U.S. and the projected soon to be largest Canadian silver producer, as well as exposure to increased liquidity and an enhanced capital markets profile. Hecla’s technical expertise, balance sheet strength, and location of assets in Yukon makes Hecla uniquely suited to advance the Rackla and Connaught projects.

Phillips S. Baker Jr., President and CEO, said: “The acquisition of ATAC reflects the continued execution of our strategy of acquiring significant land packages in highly prospective and tier one mining jurisdictions. The Rackla and Connaught projects would further consolidate our position in Yukon after our strategic acquisition of Keno Hill, which we are developing, and is expected to be the largest and the highest grade primary silver mine in Canada. We look forward to continuing our work with the First Nation of Na-Cho Nyäk Dun and the wider Yukon community.”

Prior to entering into the Arrangement Agreement, the Company and its affiliates held no beneficial ownership or direction and control over any securities of ATAC. ATAC will be acquired by the Company’s wholly-owned subsidiary, Alexco Resource Corp. Concurrently with entering into the Arrangement Agreement, the Company has entered into voting support agreements with the directors and officers of ATAC and certain of its security holders, pursuant to which the securityholders party thereto are required to vote all of their shares of ATAC and securities convertible or exchangeable into shares of ATAC, as applicable, in favour of resolutions required to give effect to the transaction.

Read the article online at: https://www.globalminingreview.com/mining/12042023/hecla-signs-definitive-agreement-to-acquire-atac-resources/