Alexco Resources ( NYSE: AXU ) +8% pre-market after Hecla Mining ( NYSE: HL ) said Tuesday it agreed to acquire all outstanding shares of the company it does not already own, and agreed to pay $135M in shares to Wheaton Precious Metals ( WPM ) for it to terminate its silver streaming interest with Alexco.
Hecla ( HL ) said it will issue 18M common shares for each Alexco ( AXU ) common share, implying a consideration of $0.47/share and representing a 23% premium based on Alexco's five-day volume weighted average price on the NYSE on July 1.
Hecla ( HL ) said it will provide interim financing for working capital and ensure continued development and exploration at Keno Hill and subscribe for additional common shares bringing its ownership stake to 9.9%.
"As the United States' largest silver producer, producing over 40% of silver mined in the U.S., it is natural that Hecla acquires Keno Hill which could also make Hecla Canada's largest silver producer," said Hecla ( HL ) President and CEO Phillips S. Baker Jr.
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Hecla Mining to buy rest of Alexco Resources for $0.47/share