RX Gold & Silver Rejects Hecla’s Unsolicited Cash Offer

RX Gold & Silver Inc. (TSXV:RXE) issued a press release in response to U.S. Silver Corporation’s (TSX:USA) statement, rejecting Hecla Mining Company’s unsolicited cash offer.

Darren Blasutti, President & Chief Executive Officer of RX Gold commented:

We believe the Hecla cash offer ignores the stated near-term value creation opportunities available to US Silver shareholders through our combination including (i) a stronger combined management team, (ii) current capital re-investment to improve access and infrastructure at the Galena mine, (iii) increased production later this year from the Coeur area, (iv) exciting exploration results from the Calladay bulk mining zone, and (v) participation in $10 million per year of expected combination synergies.  We expect these opportunities will contribute to a significant reduction in the operating costs at the Galena mine in the coming quarters and years.  Continued execution of this business plan, accretive M&A opportunities, and a recovery in commodity prices and share trading multiples, will generate significantly greater returns than the C$1.80 per share cash offered by Hecla. The Hecla offer values US Silver’s operating assets at less than $2.00 per silver resource ounce compared to the current silver price of $27.50 per ounce.

Click here to read the full press release.