The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

Hecla Acquires Interest in Canamex Resources Corp.

Monday, November 19, 2012

Hecla Acquires Interest in Canamex Resources Corp.10:00 EST Monday, November 19, 2012 COEUR D'ALENE, Idaho (Business Wire) -- Hecla Mining Company (NYSE:HL) announced today that a wholly owned Canadian subsidiary of Hecla has entered into a subscription agreement to acquire 14,000,000 common shares of Canamex Resources Corp. (“Canamex”). 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. Canamex is a Canadian-based resource exploration company currently focused on the exploration of two gold properties, the Bruner gold project (the “Bruner Project”) located in Nye County, Nevada and the Aranka North gold project located in Guyana. “Hecla is pleased to be able to make a strategic investment in Canamex to participate in the re-emergence of a historic Nevada gold district with outstanding exploration and development potential,” said Hecla's President and Chief Executive Officer Phillips S. Baker, Jr. “This is one of many strategic investments in junior mining companies with strong management and outstanding exploration land packages that Hecla is contemplating as we seek to expand our exposure to under-explored silver-gold mining districts in the Americas.” The Proposed Transaction is subject to certain conditions, including the approval of the TSX Venture Exchange. The common shares will be acquired for investment purposes by Hecla. Hecla does not have any present intention to acquire ownership of, or control over, additional securities of Canamex. It is the intention of Hecla to evaluate its investment in Canamex on a continuing basis and such holdings may be increased or decreased in the future. In completing this investment Hecla is relying on Subsection 2.3(1) of Canadian National Instrument 45-106 – Prospectus and Registration Exemptions as Hecla is an accredited investor. For the purposes of Canadian National Instrument 62-103, the address of Hecla is 6500 N. Mineral Drive, Suite 200, Coeur d'Alene, Idaho, 83815, USA. About Hecla Mining Company Established in 1891, Hecla Mining Company is a leading low cash cost silver producer in the U.S. The company has two operating mines and exploration properties in four world-class silver mining districts in the U.S. and Mexico. Cautionary Statements Statements made which are not historical facts, such as anticipated payments, litigation outcome, production, sales of assets, exploration results and plans, prospects and opportunities including reserves, resources, and mineralization, costs, and prices or sales performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “believes,” “estimates,” “targets,” “anticipates” and similar expressions are used to identify these forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, environmental and litigation risks, operating risks, project development risks, political and regulatory risks, labor issues, ability to raise financing and exploration risks and results. Refer to the company's Form 10-K and 10-Q reports for a more detailed discussion of factors that may impact expected future results. Hecla undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law. For further information, or to obtain a copy of the early warning report filed in connection with Hecla's holdings in Canamex, please contact: Hecla Mining Company Jeanne DuPont Corporate Communications Coordinator Investor and Public Relations Direct Main: 1-800-HECLA91 (1-800-432-5291) Hecla Mining CompanyJeanne DuPontCorporate Communications CoordinatorInvestor and Public RelationsDirect Main: 1-800-HECLA91 (1-800-432-5291)