isn't this precious.. AXUs share price collapses after they announce a 'shutdown' of mining operations. (and that was after it dropped hard due to the PM sector sliding lower).. But they have the balls to 'claim' the buying of AXU at 47 cents/sh is a 'benefit' because its higher than its recent 'lows'?? What a friggin joke this one is. And while I was looking to buy shares on this dip, did NOT see this coming.. Damn...And here my target price was $3.50 IF they could have gotten their mining act 'together' once permitted. (which they didn't and which is why I hesitated to buy back in). This 'deal' really sucks for those holding AXU stock.
COEUR D’ALENE, IDAHO – Hecla Mining Company (NYSE:HL) (Hecla) and Alexco Resource Corp. (NYSE American:AXU; TSX:AXU) (Alexco) are pleased to announce a definitive agreement for Hecla to acquire all of the outstanding common shares of Alexco that Hecla does not already own. Each outstanding common share of Alexco will be exchanged for 0.116 of a share of Hecla common stock implying consideration of US$0.47 per Alexco common share and a premium of 23% based on the companies’ 5-day volume weighted average price on the NYSE and NYSE American on July 1, 2022. In addition, Hecla will (i) provide interim financing to provide working capital and ensure the development and exploration at Keno Hill continues to be advanced and (ii) subscribe for additional common shares bringing its ownership stake to 9.9%.
Hecla has also entered into an agreement with Wheaton Precious Metals Corporation (WPM) to terminate its silver streaming interest at Alexco’s Keno Hill property in exchange for US$135 million of Hecla common stock conditional upon the completion of Hecla’s acquisition of Alexco.
Benefits to Alexco Shareholders
- Delivers an immediate up-front premium to Alexco shareholders