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September 7, 2022
COEUR D’ALENE, IDAHO – Hecla Mining Company (NYSE:HL) (Hecla) and Alexco Resource Corp. (NYSE American:AXU; TSX:AXU) (Alexco) announced today completion of the Alexco acquisition.
“With the world’s increasing demand for silver for clean energy, Hecla is helping meet that demand as the world’s fastest growing established silver miner,” said Phillips S. Baker, Jr., Hecla’s President & CEO. “Since 2010, Hecla has increased silver production by more than 25%. With the additional production from Alexco’s Keno Hill, and the continued production growth from Greens Creek and Lucky Friday, we expect Hecla to produce 17-20 million ounces per year in the next few years, which is 30 to 55% more than 2021. Hecla’s silver production is in the United States where it already produces 40% of all the silver mined and, with Keno Hill, Hecla is on the path of being Canada’s largest silver producer as well.”
“The Keno Hill property is in a premier mining jurisdiction where the First Nation of the Na-Cho Nyak Dun and Yukon governments are supportive of mining. Like our other operations where we have had decades of mining and have become an integral part of the communities, we look forward to doing the same in the Yukon,” Baker added.
Baker said, “Keno Hill currently has an almost decade-long high-grade reserve life, which we expect to extend as we drill on identified resources. With the fully operational mill and development that is in place we don’t anticipate a large capital program to bring the mine into production. Over the coming months Hecla plans to invest in development, infrastructure, and equipment so there are adequate mining faces and good working conditions to bring Keno Hill to full and consistent production by the end of 2023.”
As part of the acquisition, Hecla issued 17,992,875million shares of its common stock to Alexco shareholders for a total consideration of approximately $69million based on a share exchange ratio of0.116 of a Hecla share for each Alexco common share. Concurrent with the acquisition, the silver streaming interest at Alexco’s Keno Hill property held by Wheaton Precious Metals Corp was terminated in exchange for US$135 million of Hecla common stock, in the form of 34,800,989 million shares of Hecla common stock based on the 5-day VWAP of $3.88per share. As part of the transaction, Hecla provided Alexco with a US$30 million secured loan facility, of which US$25 million was drawn when the transaction closed.
Founded in 1891, Hecla Mining Company (NYSE:HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho and Quebec, Canada, the Company owns a number of exploration properties and pre-development projects in world-class silver and gold mining districts throughout North America.
For further information, please contact:
Anvita M. Patil
Vice President – Investor Relations and Treasurer
Email: [email protected]
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