Hecla announced it intends to make an offer to acquire all of the outstanding common shares of U.S. Silver Corp. for C$1.80/share in a transaction valued at more than $108 million. “Once launched and successful, the all-cash Hecla offer will provide certainty of value and immediate liquidity at an attractive valuation for U.S. Silver shareholders,” said Hecla’s President and CEO, Phillips S. Baker Jr. “We believe the proposed transaction with RX Gold & Silver fails to maximize value for U.S. Silver shareholders and is, by any measure, inferior to the Hecla offer.”
The U.S. Silver board of directors is in the process of reviewing and evaluating the announcement. During June, it agreed to be bought by RX Gold & Silver for C$1.41, according to Reuters. Shareholders of U.S. Silver were scheduled to vote on the RX Gold & Silver proposal August 7, 2012.
Through its subsidiaries, U.S. owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in U.S. history. The company controls a land package now totaling approximately 14,000 acres in the heart of the Coeur d’Alene Mining District. Hecla Mining is a leading low cash cost 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.