Hecla Mining Sells Stock To Europeans

Hecla Mining Co. sold nearly 4 million new shares of stock in Europe Wednesday, and will use the money primarily to retire debt and improve cash flow.

Hecla used Muzinich & Co. of New York to sell 3.95 million shares at $6.25 a share to institutional investors. Europe has been a strong market for investors interested in metals stocks.

The sale grossed nearly $25 million for Hecla, which will pay down debt from previous borrowings. The money will also pay for the company’s capital budget for the year, which includes developing the Rosebud gold mine in Nevada and furthering development of the promising Lucky Friday expansion project in Mullan, said corporate communications manager Vicki Veltkamp.

The sale was timed well to coincide with a spike in silver prices, which helped push Hecla’s stock price higher. “We think we attracted the attention of some good investors who are in it for the long run,” Veltkamp said. “This strengthens our shareholder base.”

After the sale, Hecla now has 55 million shares outstanding. Hecla’s stock closed down 13 cents to $6.50 a share Wednesday.

, DataTimes