The portal facilities at the entrance of the Montanore Mine, in northwest Montana. — Photo courtesy Montanore COEUR D’ALENE, Idaho--(BUSINESS WIRE)
The portal facilities at the entrance of the Montanore Mine, in northwest Montana. — Photo courtesy Montanore
COEUR D’ALENE, Idaho--(BUSINESS WIRE) -- Hecla Mining Company (NYSE:HL) (Hecla) and Mines Management, Inc. (NYSE MKT:MGN, TSX: MGT) (Mines Management) recently announced a merger agreement with Hecla acquiring Mines Management. In the proposed merger, each outstanding common share of Mines Management will be exchanged for 0.2218 of a common share of Hecla. This represents a 41% premium to Mines Management, using both companies’ 10 day VWAP (Volume Weighted Average Price) on May 20, 2016. The transaction is expected to close in the third quarter, 2016. The transaction is subject to approval by Mines Management shareholders and other closing conditions.
Following closing of the merger, Hecla intends to advance the evaluation program of Montanore. Located in Northwest Montana, Montanore is considered one of the largest undeveloped silver and copper deposits in North America. The project is approximately 10 miles from Hecla’s Rock Creek project and 50 miles north of Hecla’s Lucky Friday Mine in Idaho.
“The Montanore Project has been significantly advanced by Mines Management and, with the issuance of the final Environmental Impact Statement and Records of Decision early this year, now is the time to pass it on to Hecla to further advance the project and put it into production,” said Glenn Dobbs, Mines Management’s CEO and Chairman.
“Hecla is the logical company to move Montanore forward, with its close proximity to Rock Creek, as well as its similar geology and scale,” said Phillips S. Baker, Jr., Hecla’s President and CEO. “We have considerable experience operating Greens Creek in a National Monument which will, combined with our financial strength and commitment to the community and environment, help Montanore reach its full potential.”
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska, Idaho and Mexico, and is a growing gold producer with an operating mine in Quebec, Canada. The Company also has exploration and pre-development properties in six world-class silver and gold mining districts in the U.S., Canada, and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.
