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Hecla poised to acquire three Nevada gold mines

UPDATED: Mon., March 19, 2018

Phil Baker, Hecla Mining Co. president and CEO, shown here in February 2013,says opportunities to buy mines in Nevada’s prolific gold region are rare. (Dan Pelle / The Spokesman-Review)
Phil Baker, Hecla Mining Co. president and CEO, shown here in February 2013,says opportunities to buy mines in Nevada’s prolific gold region are rare. (Dan Pelle / The Spokesman-Review)

Hecla Mining Co. will buy three Nevada gold mines for $462 million in a cash-stock transaction.

In the deal announced Monday, Hecla will purchase the outstanding shares of Klondex Mines Ltd., of Reno, which owns the Fire Creek, Midas and Hollister mines in Nevada.

The three gold mines are underground, narrow-vein mineral properties, which Hecla is an expert at operating, said Mike Westerlund, the company’s vice president of investor relations.

Opportunities to buy mines in Nevada’s prolific gold region are rare, Phil Baker, Hecla president and CEO, said in a news release. The purchase will give the company a 110-square-mile land position in Nevada.

Coeur d’Alene-based Hecla also owns mines in Alaska, Quebec, Mexico and the Lucky Friday Mine in Mullan, Idaho, where union workers are on strike.

Klondex’s Canadian properties will be spun off into a new company, Klondex Canada. Hecla will buy a $7 million stake in the new company, Westerlund said.

The sale is subject to approval by Klondex’s shareholders, who would receive Hecla shares or $2.47 in cash for each share of Klondex stock they own.

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