Hecla Enters Into Agreement to Acquire ATAC Resources
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Hecla Mining Company has entered into a non-binding letter of intent (LOI) to acquire ATAC Resources Ltd. 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$31 million, payable in shares of Hecla common stock. The company intends to make a C$2 million strategic investment into a new exploration company (Spinco) which would hold the remaining assets of ATAC.
“We believe the potential transaction will provide significant value to ATAC shareholders. Hecla is an ideal acquirer for the Rackla Gold Property, given its adjacent Keno Hill mining project and demonstrated commitment to the Yukon and its communities. As an established and successful multi-asset producer, Hecla has the resources, strengths, and experience to meaningfully advance the known targets at Rackla and Connaught,” said ATAC president and CEO, Graham Downs.
“The spin-out of a new copper-focused exploration company provides additional value to shareholders. With the foundation of our existing copper assets, Spinco will be well positioned to aggressively explore for copper — a key critical metal — throughout BC and Yukon. We look forward to working with the Hecla team to negotiate a binding agreement for the proposed transaction, and in partnership subsequently advance the new Spinco,” added Downs.
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.
About Hecla
Founded in 1891, Hecla Mining Company is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.
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