VANCOUVER, BC, Sept. 7,
2022 /PRNewswire/ - 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 17,992,875 million shares of
its common stock to Alexco shareholders for a total consideration
of approximately $69 million based on a share exchange ratio
of 0.116 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
$3.88 per 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.
ABOUT HECLA
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.
Cautionary Statements to Investors on Forward-Looking
Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws, including
Canadian securities laws. When a forward-looking statement
expresses or implies an expectation or belief as to future events
or results, such expectation or belief is expressed in good faith
and believed to have a reasonable basis. However, such statements
are subject to risks, uncertainties and other factors, which could
cause actual results to differ materially from future results
expressed, projected or implied by the forward-looking statements.
Forward-looking statements often address our expected future
business and financial performance and financial condition and
often contain words such as "anticipate," "intend," "plan," "will,"
"could," "would," "estimate," "should," "expect," "believe,"
"project," "target," "indicative," "preliminary," "potential" and
similar expressions. Forward-looking statements in this news
release may include, without limitation: (i) Hecla could be the largest silver producer in
the U.S. and Canada; (ii) the Keno
Hill mine will resume production in the future; (iii) Hecla may produce 17-20 million ounces per
year in the next few years; (iv) Keno Hill's mine life may be
extended; (v) Hecla does not
anticipate a large capital program to bring Keno Hill into
production and (vi) Hecla expects
to invest in development, infrastructure, and equipment at Keno
Hill to obtain adequate mining faces and good working conditions to
make Keno Hill a consistent producer by the end of 2023. The
material factors or assumptions used to develop such
forward-looking statements or forward-looking information include
that Hecla's plans for development
and production will proceed as expected and will not require
revision as a result of risks or uncertainties, whether known,
unknown or unanticipated, to which Hecla's operations are subject.
Estimates or expectations of future events or results are based
upon certain assumptions, which may prove to be incorrect, which
could cause actual results to differ from forward-looking
statements. Such assumptions, include, but are not limited to: (i)
there being no significant change to current geotechnical,
metallurgical, hydrological and other physical conditions; (ii)
permitting, development, operations and expansion of Hecla's projects being consistent with current
expectations and mine plans; (iii) political/regulatory
developments in any jurisdiction in which Hecla operates being consistent with its
current expectations; (iv) the exchange rate for the USD/CAD being
approximately consistent with current levels; (v) certain price
assumptions for gold, silver, lead and zinc; (vi) prices for key
supplies being approximately consistent with current levels; (vii)
the accuracy of our current mineral reserve and mineral resource
estimates; (viii) Hecla's plans
for development and production will proceed as expected and will
not require revision as a result of risks or uncertainties, whether
known, unknown or unanticipated; (ix) counterparties performing
their obligations under hedging instruments and put option
contracts; * sufficient workforce is available and trained to
perform assigned tasks; (xi) weather patterns and rain/snowfall
within normal seasonal ranges so as not to impact operations; (xii)
relations with interested parties, including Native Americans,
remain productive; (xiii) economic terms can be reached with
third-party mill operators who have capacity to process our ore;
(xiv) maintaining availability of water rights; (xv) factors do not
arise that reduce available cash balances; and (xvi) there being no
material increases in our current requirements to post or maintain
reclamation and performance bonds or collateral related
thereto.
In addition, material risks that could cause actual results to
differ from forward-looking statements include, but are not limited
to: (i) gold, silver and other metals price volatility; (ii)
operating risks; (iii) currency fluctuations; (iv) increased
production costs and variances in ore grade or recovery rates from
those assumed in mining plans; (v) community relations; (vi)
conflict resolution and outcome of projects or oppositions; (vii)
litigation, political, regulatory, labor and environmental risks;
(viii) exploration risks and results, including that mineral
resources are not mineral reserves, they do not have demonstrated
economic viability and there is no certainty that they can be
upgraded to mineral reserves through continued exploration; (ix)
the failure of counterparties to perform their obligations under
hedging instruments; * we take a material impairment charge on our
Nevada operations; (xi) we are
unable to remain in compliance with all terms of the credit
agreement in order to maintain continued access to the revolver,
and (xii) we are unable to refinance the maturing senior notes. For
a more detailed discussion of such risks and other factors, see
Hecla's 2021 Form 10-K, filed on
February 23, 2022, with the
Securities and Exchange Commission (SEC), as well as Hecla's other SEC filings, including its
Quarterly Report on Form 10-Q filed with the SEC on August 5, 2022. Hecla does not undertake any obligation to
release publicly revisions to any "forward-looking statement,"
including, without limitation, outlook, to reflect events or
circumstances after the date of this news release or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws. Investors should not assume that any
lack of update to a previously issued "forward-looking statement"
constitutes a reaffirmation of that statement. Continued reliance
on "forward-looking statements" is at investors' own risk.
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SOURCE Alexco Resource Corp.
