Image courtesy of hwww.wallace-id.com
Hecla Mining Co has been in business for over 120 years and expects to produce between 8 and 9 million ounces of silver this year from it’s primary mines. That’s impressive.
Guess what? They’re growing bigger.
It was recently announced that Hecla mining, the second largest U.S. silver miner by output, is to buy Canada-based Aurizon Mines, giving it access to Quebec gold mine.
Aurizon Mines Ltd is a gold producer with 8 properties in Quebec. It was incorporated in 1988.
Together it is anticipated that they will have a market capitalization of about $1.64 billion, said Hecla!
Analyst Steven Butler of Canaccord Genuity said, “It is a white knight offer. The advantage for Hecla is that it is a friendly offer. It is a superior offer on a cash basis, $514 million versus Alamos’s $305 million maximum cash component in this market I suppose, the more the cash the more certainty of the offer, the better”[source].
It’s a bold but bright move for Hecla as they expect the transaction to close in the second quarter of this year, after meeting the approval of shareholders.
Together, the two companies present a unique precious metals company that’s bound for success. Hecla President Phillips Baker said in a statement that the two companies have some of the most favorable mining jurisdictions in the world.
We’re excited to see the future unfold as these two great mining companies unite.
Toronto Gold is a gold buyer in Toronto, ON. The above image is not our own.