Hecla Mining Company, which operates mines out of Alaska including the Greens Creek Mine near Juneau, announced Tuesday it will acquire the mineral group Mines Management, Inc.
The merger is expected to close in the third quarter of this year and is still subject to approval by Mines Management shareholders and other closing conditions, according to a statement Hecla released Tuesday.
In the proposed merger, each outstanding common share of Mines Management will be exchanged for 0.2218 of a common share of Hecla. That represents a 41 percent premium to Mines Management, using both companies’ 10-day Volume Weighted Average Price as of May 20.
Following the merger, Hecla officials intend to continue work at a mine in Montanore, Montana, currently wholly owned by Mines Management’s. Hecla officials state it is an undeveloped area for silver and copper mining in North America. The project is approximately 10 miles from Hecla’s Rock Creek project and 50 miles north of Hecla’s Lucky Friday Mine in Idaho.
Hecla, founded in 1891, is a U.S. silver producer with operating mines in Alaska, Idaho and Mexico, and is a gold producer in Quebec.