Silver Merger Formally Falls Apart (HL)

Hecla Mining Company (NYSE: HL) has had troubles of its own for a while.  After the U.S. Silver Corporation (traded in Canada, operating in Idaho) said that a sufficient number of its common shareholders have voted to approve a transaction with RX Gold & Silver, Hecla has announced the termination of its offer to acquire U.S. Silver.

Today’s news is probably of little shock considering that both proxy advisory firms ISS and Glass Lewis had previously recommended that U.S. Silver shareholders vote for combination transaction with RX Gold.  It was also worth noting that U.S. Silver asked its shareholders to reject the hostile bid from Hecla.

Hecla was quoted saying, “As previously disclosed, the Hecla Offer was conditional upon the proposed RX transaction not proceeding or such transaction otherwise terminating. All U.S. Silver common shares and common share purchase warrants previously tendered and not withdrawn under the Hecla Offer will be returned promptly in accordance with the terms of the tender offer.”

Hecla’s shares are down 0.8% at $4.66 on the day so far and the 52-week trading range is $3.70 to $8.10.  It seems that this has been of little surprise to anyone so far.

JON C. OGG