Tag Archives: Aurizon Mines Ltd

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Hecla Announces Pricing of US$500,000,000 Senior Notes Offering

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By Business Wirevia The Motley Fool

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Hecla Announces Pricing of US$500,000,000 Senior Notes Offering

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) (Hecla or the Company) today announced the pricing of its offering of US$500,000,000 of 6.875% Senior Notes due 2021 (the Notes) to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act) and outside the United States pursuant to Regulation S under the Securities Act. The size of the offering represents an increase of US$100,000,000 from the amount originally proposed. The coupon on the Notes will be 6.875% per year payable in cash semi-annually in arrears. The Notes will mature on May 1, 2021. The transaction is expected to close on or about April 12, 2013, subject to the satisfaction of various customary closing conditions.

The Notes will be guaranteed by certain of the Company’s subsidiaries. The Company will deposit the proceeds from the Notes into an escrow account until the satisfaction of certain conditions, including the consummation of the previously announced pending acquisition of Aurizon Mines Ltd. (the Escrow Conditions). If the Escrow Conditions are not satisfied or waived on or prior to September 1, 2013, or such earlier date as Hecla determines in its sole discretion that the Escrow Conditions cannot be satisfied, or the related escrow agreement is terminated, the Notes will be subject to a special mandatory redemption. Escrowed funds would be released and applied to pay for any such redemption.

The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

This news release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

ABOUT HECLA

Established in 1891, Hecla Mining Company is the largest and lowest-cost primary silver producer in the U.S. The company has two operating mines and exploration properties in four world-class silver mining districts in the U.S. and Mexico.

Cautionary Note …read more

Source: FULL ARTICLE at DailyFinance

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Hecla Mining Company to Offer Senior Notes

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By Business Wirevia The Motley Fool

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Hecla Mining Company to Offer Senior Notes

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) (Hecla or the Company) announced today that it intends to offer, subject to market and other conditions, US$400 million of new Senior Unsecured Notes (the Notes) due 2021. The Notes will be fully and unconditionally guaranteed by certain of the Company’s subsidiaries. The proceeds will be used to partially fund the acquisition of Aurizon Mines Ltd. (the Acquisition) and for general corporate purposes, including expenses related to the Acquisition.

The Company will deposit the proceeds from the Notes into an escrow account until the satisfaction of certain conditions set forth in an escrow agreement, including the consummation of the Acquisition (the Escrow Conditions). If the Escrow Conditions are not satisfied or waived or the escrow agreement related thereto is terminated, the Notes will be subject to a special mandatory redemption. Escrowed funds would be released and applied to pay for any such redemption.

The Notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the Securities Act).

The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

ABOUT HECLA

Established in 1891, Hecla Mining Company is one of the largest and lowest-cost primary silver producers in the U.S. The company has two operating mines and exploration properties in four world-class silver mining districts in the U.S. and Mexico.

Cautionary Statements

Statements made which are not historical facts, such as anticipated payments, litigation outcome, production, sales of assets, exploration results and plans, prospects and opportunities including reserves, resources, and mineralization, …read more
Source: FULL ARTICLE at DailyFinance

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Hecla Urges Aurizon Shareholders Not to Tender to Alamos and to Withdraw Tendered Shares

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By Business Wirevia The Motley Fool

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Hecla Urges Aurizon Shareholders Not to Tender to Alamos and to Withdraw Tendered Shares

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) (Hecla or the Company) urges Aurizon shareholders to continue withdrawing shares tendered to Alamos’ inadequate bid and not to tender any new shares to the bid. Aurizon Mines Ltd. (Aurizon) announced yesterday that the British Columbia Securities Commission (the Commission) has cease traded Aurizon’s shareholder rights plan which means that today is the day shareholders can show Alamos their bid is inferior. All currencies are in CAD$ unless otherwise noted.

“The decision shareholders have to make is whether they want to tender into an Alamos bid that is $0.29 per share less than the Hecla deal and $0.14 less than Aurizon’s current share price,” said Phillips S Baker, Jr., Hecla’s President and CEO. “Clearly the alternative that puts the most value into Aurizon shareholders’ pockets is to hold the shares and get the premium valuation from Hecla. Alternatively, given that Alamos’ bid has traded to such a low point, shareholders can sell the Aurizon shares in the open market and receive additional value over the inferior bid of Alamos.”

The Commission’s decision highlights the need for Aurizon shareholders to withdraw any existing tendered shares and to not make any new deposits in order to secure the highest value for their shares. The Commission did not grant Alamos’ request to remove the $27.2 million termination fee payable to Hecla in the event that any person acquires more than 33 1/3% of Aurizon’s outstanding shares.

It is now up to the shareholders of Aurizon to show that they are not intimidated by Alamos’ coercive tactics and ensure that the financially superior Hecla Arrangement prevails. This can only happen if less than 17% of Aurizon’s outstanding shares are deposited to the Alamos bid. Counsel for Alamos disclosed in the hearing before the Commission on March 15, 2013 that only 6.5% of Aurizon’s shares were tendered to its offer as of that date.

Hecla strongly urges Aurizon’s shareholders NOT to deposit their shares to the coercive Alamos bid and to withdraw any shares they have deposited for the following reasons:

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Hecla's Deal with Aurizon Has More Value and More Cash Than the Alamos Bid

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By Business Wirevia The Motley Fool

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Hecla’s Deal with Aurizon Has More Value and More Cash Than the Alamos Bid

Hecla offers a $0.31 per share premium to Alamos, 68% more cash

Alamos, Aurizon’s largest shareholder, is seeking to force Aurizon shareholders to take a lower bid by a small increase in its ownership

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) (Hecla or the Company) today reaffirmed the premium value of its proposed acquisition of Aurizon Mines Ltd. (TSX:ARZ) (NYSE MKT:AZK) (Aurizon) announced on March 4, 2013, pursuant to an arrangement agreement (Hecla Arrangement) with Aurizon. Hecla also cautioned Aurizon shareholders that its largest shareholder Alamos Gold Inc. (Alamos) is attempting to increase its ownership position to a level that would prevent Aurizon shareholders from accepting a higher price. All currencies are CAD$ unless otherwise noted.

“Alamos continues to try to distract Aurizon shareholders from the simple fact that the Hecla Arrangement is currently valued at $0.31 per share more than the Alamos offer, which is valued even lower than the current share price of Aurizon. About two thirds of Hecla’s offer is available in cash, Alamos’ is less than half,” said Phillips S. Baker Jr., Hecla’s President and Chief Executive Officer. “Alamos’ avowed attempt to block the Hecla arrangement by increasing its minority position to a blocking position rather than letting shareholders decide, illustrates the weakness of Alamos’ offer. We believe that Aurizon shareholders will prefer a higher price, more cash and an interest in Hecla to Alamos’ lower price, less cash and an interest in a company with assets outside Canada and the U.S. We join the Aurizon board in urging Aurizon shareholders not to tender to the Alamos transaction.”

Hecla is offering significantly more value than the Alamos offer

  • A higher price – based on the closing share prices of Hecla and Alamos on March 13, 2013, the Hecla Arrangement provides $0.31 more value than the Alamos bid.
  • More cash – the Hecla arrangement offers Aurizon shareholders greater value certainty through a maximum $513.6 million in cash, which is 68% higher than the maximum amount of cash offered by Alamos ($305 million maximum cash). Roughly two thirds of the Hecla Arrangement is in cash with Alamos’ bid being less than half.

Alamos’ statements …read more
Source: FULL ARTICLE at DailyFinance

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Hecla's Agreement to Acquire Aurizon is Superior for Aurizon Shareholders

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By Business Wirevia The Motley Fool

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Hecla’s Agreement to Acquire Aurizon is Superior for Aurizon Shareholders

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) (Hecla) (Company) today reiterated the superiority of its agreed-upon transaction with Aurizon Mines Ltd. (TSX:ARZ) (NYS: AZK) (Aurizon), announced on March 4, 2013, and strongly urges shareholders to reject the Alamos offer.

President and Chief Executive officer, Phillips S. Baker, Jr. said, “Our offer is superior to the Alamos offer by CAD$0.27, based on yesterday’s closing prices, and includes a 68% higher cash component. Tendering to the Alamos offer risks depriving Aurizon shareholders of the premium our offer represents as well as the significant upside we see in a Hecla-Aurizon combination. As a North America focused precious metals producer, we believe the combined company will deliver increased value well into the future.”

Hecla’s arrangement agreement is superior to the unsolicited Alamos offer for many reasons, included but not limited to:

  • Implied value is superior – Implied value of Hecla’s offer of CAD$4.55, based on closing prices on March 4, 2013, represents a CAD$0.27 premium to the current implied value of Alamos offer of C$4.28
  • Larger cash component – Hecla’s agreement has a 68% higher cash component than the Alamos offer
  • Superior business logic – the combined company will have low cost operating mines with long lives in mining friendly jurisdictions
  • Reduced operating risk – 120 years of mining experience, most of it in underground mines similar to Casa Berardi
  • Growth opportunities – enhanced exposure to exploration and pre-development projects

Separately, Aurizon today reiterated its recommendation that shareholders support the Hecla transaction and do not tender into the Alamos offer or withdraw tenders already made. Aurizon urged shareholders who have tendered to immediately withdraw tendered shares.

Mr. Baker continued, “We believe that the combination of Aurizon and Hecla provides the best opportunity for operational synergies and the creation of lasting value for shareholders. The new company will have three long life low cost assets in mining friendly jurisdictions. We have followed Aurizon and Casa Berardi for the past 7 years and believe strongly in the asset, its exploration upside, and the benefits of where the project is located. We invite the Aurizon shareholders to join us as we build a leading …read more
Source: FULL ARTICLE at DailyFinance

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Today's Market Winners and Losers

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By 24/7 Wall St.

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The stock market is down Monday, with the Dow Jones Industrial Average down 0.35%, the Nasdaq down 0.20% and the S&P 500 down 0.20%. Today’s winners include a materials manufacturer getting bought out and an insurer bolstering capital. Today’s losers include a mattress retailer who will likely report weaker-than-expected financials for the first quarter and a mining firm buying out a rival.

These are Monday’s market winners and losers.

Biggest Winners

Shares of Ferro Corp. (NYSE: FOE) are up 29.13% to $6.72 on trading volume of 7.4 million shares. Chemical firm A. Schulman, Inc. (NASDAQ: SHLM) has offered to buy the company for $563 million in cash and stock. Before Monday, the 52-week high was $6.39.

Shares of MGIC Investment Corp. (NYSE: MTG) are up 9.78% to $4.16 on trading volume of 10.1 million shares. The company announced it may bolster capital, indicating to investors that the company may take on more risk involving the housing market. The 52-week high is $5.15.

Biggest Losers

Shares of Select Comfort Corporation (NASDAQ: SCSS) are down 15.16% to $17.40 on trading volume of 2.7 million shares. The mattress retailer said its February sales were below internal targets, and the firm would likely miss its goals for the first quarter. Before Monday, the 52-week low was $19.00.

Shares of Hecla Mining Co. (NYSE: HL) are down 12.07% to $4.08 on trading volume of 3.7 million shares. The mining firm will buy Aurizon Mines Ltd. (AMEX: AZK) for $774 million in order to gain control of a gold mine in Quebec. The 52-week low is $12.07.

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Filed under: 24/7 Wall St. Wire Tagged: AZK, FOE, HL, MTG, SCSS, SHLM

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Source: FULL ARTICLE at DailyFinance

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Hecla Diversification Buyout Seen as Too Costly

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By 24/7 Wall St.

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Hecla Mining Co. (NYSE: HL) is seeing its shares clipped hard this morning due to an acquisition it is making. The company will spend close to $800 million to acquire Aurizon Mines Ltd. (NYSEMKT: AZK). It is not uncommon for an acquirer to see its shares drop when it spends up for an acquisition. What is different about this deal is that Hecla has had enough mine problems that you wonder why investors are not cheering some mine diversification efforts.

Hecla said that it has received a $500 million financing commitment from The Bank of Nova Scotia and there is no financing condition in the acquisition. As such, the transaction will be fully financed, but one note here is that the deal will not require the approval of Hecla shareholders.

As part of the deal, Aurizon shareholders will receive $4.75 (Canadian dollars) per share, or they can choose to accept 0.9953 of a Hecla share per share they own. The deal is subject to caps on each election: maximum cash consideration of $513,631,193 (Canadian dollars) and a maximum number of Hecla shares issued of 57,000,000. On this matter Hecla said:

Assuming that all Shareholders elected either the Cash Alternative or the Share Alternative, each Shareholder would be entitled to receive CAD$3.11 in cash and 0.34462 of a Hecla share for each Aurizon common share.

Hecla’s goal is to create long-life, high-grade, low-cost mines in some of the best mining jurisdictions in the world. The three properties have in common what Hecla says are “strong exploration potential on very large and contiguous land positions as well as locations near communities that are supportive to mining.”

The reaction is taking a bite out of Hecla shares, sending it down 10% to $4.17 against a 52-week range of $3.70 to $6.94. Hecla’s market cap is about $1.3 billion. Sometimes investors think that diversification comes with too high of a price. That seems to be the case here.

Filed under: 24/7 Wall St. Wire, Mergers & Acquisitions, Mergers and Buy Outs, Metals Tagged: AZK, HL

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Source: FULL ARTICLE at DailyFinance