On July 5, 2022, Hecla Mining announced that it has entered into a definitive agreement to acquire all of the outstanding common shares of Alexco Resource Corp. By partnering with Alexco, Hecla aims to become Canada’s largest silver producer and will be better positioned to meet the growing demand for domestically sourced silver. Through this agreement, Hecla will acquire Alexco’s Keno Hill project, a secure high-grade silver development and exploration project that has a small environmental footprint. Hecla has also entered into an agreement with Wheaton Precious Metals Corporation to terminate its silver streaming interest at Alexco’s Keno Hill property in exchange for US$135 million of Hecla common stock conditional upon the completion of Hecla’s acquisition of Alexco.
Concurrently with the arrangement agreement, Hecla agreed to provide Alexco with a US$30 million secured loan facility and to purchase 8,984,100 Alexco Shares at C$0 .50 per share, having an aggregate value of C$4,492,050 which will result in 9.9% of Alexco Shares being held by Hecla or its affiliates.
Hecla Mining is a gold, silver, and other precious metals mining company based in Coeur d’Alene, Idaho. Founded in 1891, it is the second largest silver producing mining company in the United States.
Alexco Resource Corp. is the owner and operator of the historic Keno Hill Silver District in Canada’s Yukon Territory, one of the highest-grade silver deposits in the world.
Osler, Hoskin & Harcourt LLP advised Hecla with a team consisting of Alan Hutchison, Jeremy Fraiberg (Corporate), Martha Martindale (Financial Services), Nicole Cargill, Patrick Sullivan, and Lauren Sutherland (Corporate).