Hecla Mining confirsm letter of intent to acquire ATAC Resources for C$31M

Hecla Mining acknowledges that it has entered into a non-binding Letter of Intent to acquire ATAC Resources and its Rackla and Connaught projects in Yukon, Canada. Under the proposed transaction, the company would acquire all of the issued and outstanding shares of ATAC for C$0.14 per ATAC share, for a consideration of C$31M, payable in shares of Hecla common stock. The company intends to make a C$2M strategic investment into a new exploration company which would hold the remaining assets of ATAC. The company would also acquire (i) a right of first refusal to acquire any or all of the Spinco Assets, and (ii) a number of units of Spinco such that it would own 19.9% of Spinco’s issued and outstanding common shares following completion of the strategic investment. Each Spinco Unit would contain one common share of Spinco and one warrant. Each Spinco Warrant would entitle the Company to purchase one additional Spinco Share for a period of five years at the same price as a Spinco Unit. The key provisions of the LOI are non-binding and any acquisition would only occur pursuant to a definitive agreement with customary representations, warranties, covenants and conditions to closing. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated with ATAC. The company has entered into an exclusivity period of 30 days with ATAC.