Having recently elected a new board of directors, Acadia Mineral Ventures (TSE) is entering into an agreement in principle with Hecla Mining (NYSE) whereby Hecla will transfer all of its interest in certain Canadian mineral properties to Acadia. In exchange for the properties, valued at $3.6 millon, Acadia will transfer nine million common shares to Hecla at 40 cents per share, a 50% premium more than the current market price.
Under the terms of the agreement, Hecla will provide an additional $5.2 million for exploration and development of Acadia’s properties over the next three years. Hecla’s Canadian subsidiary will also agree to spend $1.2 million.
If the agreement is accepted, Hecla will own a majority of the outstanding shares of Acadia. Hecla will also be entitled to a majority representation on Acadia’s board of directors.
The closing of these transactions is subject to the execution of a definitive agreement of purchase and sale on or before May 4 and to the approval by regulatory authorities, the directors of Hecla and Acadia, and Acadia shareholders.
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