VANCOUVER — Hecla Mining Co. completed its acquisition of Klondex Mines Ltd. for $153 million and 75 million shares, the company announced July 23.
“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., Hecla president and CEO. “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.”
Havilah Mining Corp. is the newly formed entity that will retain Klondex’s Canadian operations and will be listed on the TSX Venture Exchange with trading expected to begin July 25. Klondex shares were delisted from the NYSE American Stock Exchange before opening of trading July 23.
As part of the transaction, Hecla subscribed for 3.5 million common shares of Havilah for investment purposes.
Hecla was founded in 1891 and is a silver producer with operating mines in Alaska, Idaho and Mexico. The company is a growing gold producer with mines in Quebec and Nevada.