Toronto, Ontario--(Newsfile Corp. - July 13, 2022) - A copy of the full report is available to read by following the link to the full report below:
https://mailchi.mp/mineralfunds/mergers-acquisitions-report-july-13-2022
This report provides a summary of Gold & Precious Metal Funds that hold:
| 1) The Acquirer only: 2) The Acquired Company only: | Hecla Mining Company (NYSE: HL) Alexco Resource Corp. (NYSE: AXU) (TSX: AXU) |
| 3) Both the Acquirer and the Acquired Company | |
On Tuesday 5th July 2022, Hecla Mining Company (NYSE: HL) (Hecla) and Alexco Resource Corp. (NYSE: AXU) (TSX: AXU) (Alexco) announced a definitive agreement wherein Hecla is to acquire all of the outstanding common shares of Alexco not already owned by Hecla. Each outstanding common share of Alexco is to be exchanged for 0.116 of a share of Hecla common stock. This implies a consideration of US$0.47 per Alexco common share, which is a premium of 23% based on the companies' NYSE traded 5-day volume weighted average price calculated on 1st July 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.
Hecla is providing Alexco with a US$30 million secured loan facility and is purchasing 8,984,100 Alexco Shares at C$0.50 per share, having an aggregate value of C$4,492,050, which will result in 9.9% of Alexco Shares being held by Hecla or its affiliates.
Benefits to Hecla Shareholders
- A large, high-grade silver property in the Yukon, a top 10 rated jurisdiction by the Fraser Institute
- A fully permitted property with infrastructure that includes a 400 tonne per day mill, on-site camp facility, all-season highway access, and connection to the hydropower grid
- Increases Hecla's silver exposure by increasing proven and probable silver reserves 19% to 237 million ounces, measured and indicated resources 24% to 257 million ounces and inferred resources 7% to 523.7 million ounces
- Potential to be Canada's largest silver producer
Benefits to Alexco Shareholders
- Delivers an immediate up-front premium to Alexco shareholders
- Allows advancement of Keno Hill's development with an immediate and non-dilutive interim financing
- Partners with the United States' largest silver producer
- Transitions from a single asset and its development risk to a diversified production base of long-lived mines and a portfolio of high-quality exploration projects
- A strong balance sheet to invest in Keno Hill and continue its history of resource expansion
- Enhanced capital markets profile with increased analyst coverage and trading liquidity
6 Funds show as holding Alexco Resource Corp. (NYSE: AXU) (TSX: AXU) exclusively, and will be the principal performance beneficiaries from this transaction:
Funds Holding:
| Acquired Company only | Acquirer only | Both |
| Alexco Resource Corp. only | Hecla Mining Company only | |
| iW Commodities & Gold Equities | American Century Global Gold Fund | Invesco Gold & Special Minerals Fund |
| Silver Plus Fund | OCM Gold Fund | Fidelity Select Gold |
| DMS Charteris Gold & PM Fund | Rydex Precious Metals Fund | Konwave Gold Equity Fund |
| Junior Gold and Silver Miners Fund | Precious Metals UltraSector ProFund | STABILITAS Silber+Weissmetalle |
| Ixios Gold Fund | BMO Precious Metals Fund | Invesco Gold and Special Mtls. (Lux) |
| Precious Cap. Glbl. Mining & Metals | BAKERSTEEL Precious Metals Fund | SafePort Silver Mining Fund |
| Total: 6 | CPR Invest - Global Gold Mines | Jupiter Gold & Silver Fund |
| Deutsche Invest I Gold & PM Equities | Amundi Gold Stock | |
| STABILITAS Pacific Gold+Metals | SafePort Gold & Silver Mining Fund | |
| iW Precious Metal Mining Equities | Total: 9 | |
| NESTOR Gold Fund | ||
| Konwave Sustainable Gold Equity Fund | ||
| Claresco Or et Métaux Précieux | ||
| Ninepoint Silver Equities Class | ||
| AuAg Silver Bullet | ||
| BAKERSTEEL Electrum Fund | ||
| Konwave Transition Metals Fund | ||
| ES Baker Steel Gold and Precious Metals Fund | ||
| Zenito Silver and Gold Fund | ||
| Craton Capital Precious Metal Fund | ||
| C-Quadrat Gold & Resources Fund | ||
| Total: 21 |
Source: https://mineralfunds.com/gold-funds/
MineralFunds.com provides prices, performance and trade information for all the world's metal ETFs including: Precious Metals, Battery Metals, Platinum Group Metals and Base Metals and comprehensive fund information, including asset allocations, for Gold & Precious Metals Managed Funds from all investment jurisdictions.
For further information please contact:
(416) 525 - 6869
manager@mineralprices.com
Report prepared by: Kay Samnani, Analyst and Christopher J. Berlet BSc, CFA
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/130777
