Hecla Mining to buy Revett, reaffirms commitment to Rock Creek
Hecla Mining Company announced Friday they will acquire Revett Mining Inc. The agreement was completed Thursday and is expected to be completed, with shareholder approval, late in the second quarter of 2015.
Luke Russell, Hecla’s vice president for external affairs, said Hecla’s decision was based upon Revett’s Rock Creek Mine project.
“The main impetus behind the acquisition is Rock Creek,” Russell said.
Russell said Hecla has the experience to help bring the Rock Creek project to successful development, based upon similar projects undertaken by the company. One such project is the Greens Creek Mine on Admiralty Island, Alaska.
Greens Creek is located inside and adjacent to the Admiralty Island National Monument.
“We want to bring that experience to Rock Creek,” he said.
Rock Creek is in the final permitting stages and is currently awaiting the release of a Supplemental Environmental Impact Statement from the Forest Service. The statement is in response to litigation filed against the project and was ordered by federal courts. Russell said he anticipates the impact statement will be released this year.
“We are going to sit down with the Forest Service to better understand their timeline and status,” he said. “We’re looking forward to working with them on this project.”
Hecla immediately announced the decision to move the Troy Mine from a care and maintenance status to final closure and reclamation. That process, Russell said, should take between two and three years to complete.
Established in 1891, Hecla is the oldest precious metals mining company in North America and is the largest primary silver producer in the United States. The company is based in Couer d’Alene, Idaho.
In the agreement, each outstanding share of Revett common stock will be traded for .1622 of a share of Hecla common stock. With Hecla’s $3.23 per share closing price as of March 25, Revett’s shareholders are positioned to gain more than 30 percent value in the transaction.