Hecla, Equinox merger approved

Shareholders of Equinox Resources (TSE) have voted overwhelmingly in favor of merging with Hecla Mining (NYSE).

Holders of Equinox common shares, options and warrants will receive 6.3 million Hecla common shares, making the transaction worth $106 million (based on Hecla’s recent share price).

By acquiring Equinox, Hecla gains more than 600,000 oz. of proven and probable gold reserves, mainly from the American Girl and Rosebud properties in the western U.S. It also enables Hecla to add 30,000 oz. of annual gold production to its account, plus $10.5 million in cash, including $5.3 million from the future exercise of outstanding Equinox options and warrants.