COEUR D’ALENE, Idaho--(BUSINESS WIRE)--Hecla Mining Company (NYSE: HL) (“Hecla”) announced today that a wholly owned subsidiary of Hecla has today acquired an aggregate of 2,424,335 common shares (“Shares”) of Dolly Varden Silver Corporation (“Dolly Varden”) in two tranches. The first tranche was comprised of 1,311,989 Shares and the second tranche was comprised of 1,112,346 Shares. The agreements for these share subscriptions were entered into today and are further to the Ancillary Rights Agreement which Hecla has with Dolly Varden, allowing it to maintain its pro rata shareholding in Dolly Varden. These rights were triggered when Dolly Varden agreed to private placements with third parties.
Prior to the completion of these two subscriptions, Hecla, through its wholly owned subsidiary, Hecla Canada Ltd. (“Hecla Canada”), held 8,755,652 Shares representing 10.43% of the 83,953,844 Shares outstanding prior to the private placements with third parties and Hecla’s subscriptions. After completion of the two subscriptions and the concurrent private placements, Hecla Canada will hold 11,179,987 Shares representing 10.77% of the 103,766,058 Shares that will then be outstanding (calculated on an undiluted basis). The change in Hecla Canada’s percentage ownership is therefore 0.34%.
The 1,311,989 Shares subscribed for by Hecla Canada in the first tranche were issued at a price of C$0.33 per Share for total gross proceeds to Dolly Varden of C$432,956.37. The 1,112,346 Shares subscribed for by Hecla Canada in the second tranche were issued at a price of C$0.40 per Share for total gross proceeds to Dolly Varden of C$444,938.40.
The Shares were acquired for investment purposes by Hecla. Hecla does not have any present intention to acquire ownership of, or control over, additional securities of Dolly Varden. It is the intention of Hecla to evaluate its investment in Dolly Varden on a continuing basis and such holdings may be increased or decreased in the future.
For the purposes of Canadian National Instrument 62-103, the address of Hecla is 6500 N. Mineral Drive, Suite 200, Coeur d’Alene, Idaho, 83815, USA.
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska, Idaho, and Mexico and is a gold producer with operating mines in Quebec, Canada and Nevada. The Company also has exploration and pre-development properties in eight world-class silver and gold mining districts in the U.S., Canada and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.
For further information, or to obtain a copy of the early warning report filed in connection with Hecla’s holdings in Dolly Varden, please contact:
Corporate Communications Coordinator