Alexco shareholders urged to take Hecla deal
Investor Insight: InterGroup Mining
SPONSOREDintergroup mining
SPONSOREDsaturn metals
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SPONSOREDbarton gold holdings limited
Sky the limit for AuTECO in Canada
SPONSOREDauteco minerals ltd
"The transaction makes strategic sense as shareholders will benefit from jurisdictional and project risk diversification, enhanced financing capacity and access to capital, and the benefits conferred by a consolidation of assets with Hecla," the advisory Institutional Shareholders Services said.
The two companies announced a definitive agreement for the acquisition on 5 July, which involves each outstanding common share of Alexco being exchanged for 0.116 of a share of Hecla common stock, implying a consideration of $0.47 per Alexco common share.
Investor Insight: InterGroup Mining
SPONSOREDintergroup mining
SPONSOREDsaturn metals
Emerging SA gold developer Barton Gold breaks the mould
SPONSOREDbarton gold holdings limited
Sky the limit for AuTECO in Canada
SPONSOREDauteco minerals ltd
The deal will see the US' largest and highest-grade silver producer, Hecla, adding Canada's largest and highest-grade silver reserve to its portfolio.
Alexco owns and operates the majority of the historic Keno Hill Silver District in Canada's Yukon Territory.
Alexco's share price was $0.51 on 15 August, giving the company a market capitalisation of $88.82 million.
Hecla's share price was $4.47 with a market capitalisation of $2.42 billion.