Silver-focused Hecla Acquires Interest in Gold Properties Through Canamex

Hecla Mining Co. (NYSE:HL) announced that its 100-percent-owned Canadian subsidiary will acquire 14,000,000 common shares of Canamex Resources Corp. (TSXV:CSQ) via a subscription agreement. Hecla is focused on silver, but its interest in investing in Canamex stems from its desire to “participate in the re-emergence of a historic Nevada gold district with outstanding exploration and development potential,” according to Phillips S. Baker, Jr., Hecla’s president and CEO.

As quoted in the press release:

Subject to receipt of approval by the TSX Venture Exchange, the common shares will be issued to the wholly owned subsidiary of Hecla from treasury at a price of $0.18 per common share for total gross proceeds to Canamex of $2,520,000. Upon completion of the transactions contemplated by the subscription agreement (the “Proposed Transaction”), the 14,000,000 common shares will represent and Hecla will exercise control over approximately 15% of the outstanding common shares of Canamex. In addition, Hecla will have the right to appoint one representative to the Board of Directors of Canamex and will be providing technical assistance to Canamex. Hecla will also have the right to participate in future equity offerings of Canamex in order to maintain Hecla’s pro-rata equity interest in Canamex.

Click here to read the full Hecla Mining Co. (NYSE:HL) press release.