The Conversation (0)
Hecla Mining Co. (NYSE:HL) and Revett Mining Company Inc. (TSX:RVM,NYSEMKT:RVM) announced that they have entered into a merger agreement under which Hecla will acquire Revett.
Hecla Mining Co. (NYSE:HL) and Revett Mining Company Inc. (TSX:RVM,NYSEMKT:RVM) announced that they have entered into a merger agreement under which Hecla will acquire Revett.
Each outstanding Revett share will be exchanged for 0.1622 of a common share of Hecla, which represents a 32-percent premium to Revett’s 20-day volume-weighted average price. The deal is reportedly worth $20 million.
As quoted in the press release:
The parties currently expect the transaction to close late in the second quarter, 2015. The transaction is subject to approval by Revett shareholders and to the satisfaction of other closing conditions contained in the merger agreement.
Following closing of the merger, Hecla intends to continue to advance permitting of the Rock Creek project. Located inNorthwest Montana, Rock Creek is considered one of the largest undeveloped silver and copper deposits in North America. Revett has reported inferred resources of 229 million ounces of silver and 2.0 billion pounds of copper. The project is approximately 50 miles north of Hecla’s Lucky Friday Mine in Idaho. A Supplemental Environmental Impact Statement (SEIS) is in process and the U.S. Forest Service schedule indicates that the SEIS will be issued later this year for public comment.
Phillips S. Baker, Jr., president and CEO of Hecla, commented:
We are acquiring Revett with an eye to the future, as Rock Creek is a world-class silver-copper deposit that we see becoming another Greens Creek. Our experience of Greens Creekoperating in a National Monument in Alaska since 1997 will be invaluable as we take a patient and persistent approach to permitting and then responsibly operating the Rock Creek Mine. Combining this operational expertise with our financial strength, and an unwavering commitment to safety and building strong community relationships, gives us confidence that we are well-positioned to move Rock Creek forward, to the benefit of all stakeholders.
John Shanahan, president and CEO of Revett, said:
Current market conditions do not allow us to maintain the Troy Mine on care and maintenance and pursue our objective of developing Rock Creek. We share similar core values with Hecla and see them as the company with the financial and technical capabilities to develop the potentially world-classRock Creek deposit in an efficient and responsible manner. We believe our shareholders, along with the communities of northwest Montana who have been so supportive in our endeavors, will benefit greatly from this merger.
Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho, and is a growing gold producer with an operating mine in Quebec, Canada. The Company also has exploration and pre-development properties in five 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.