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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:

Business, Finance, Occupation & Industry

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