Hecla Mining Completes Purchase In Venezuela
Hecla Mining Co. has finalized its purchase of a Venezuelan gold mine, company officials announced Monday.
The company paid Bermuda-based Monarch Resources $25 million for the La Camorra underground mine and other exploration properties in Latin America.
The purchase included $9 million in cash and 6.7 million shares of Hecla’s common stock.
La Camorra is a narrow-vein, underground mine, similar to the projects that Hecla has mined for 100 years in the Silver Valley, said Art Brown, Hecla president and CEO.
La Camorra produced 51,000 ounces of gold in 1998. Company officials expect to boost production to 80,000 ounces in 2001. Mining should continue at least six years, with cash costs below $200 per ounce of production, the company said.
La Camorra’s mill will close for three months to allow employees to work on mine development and improve the tailings impoundment area. The improvements will cost $9 million to $10 million and will be completed by the third quarter.