Hecla Responds to U.S. Silver Board Recommendation; Urges U.S. Silver Shareholders to Take Immediate Action to Stop the RX Proposal
Hecla's CDN$1.80 all cash offer provides significant, immediate and certain value, but it is conditional on the proposed transaction with RX Gold & Silver NOT proceeding
U.S. Silver shareholders face potential dilution, loss of proportional representation, and significant operational risk with the proposed RX transaction
U.S. Silver shareholders need to take action immediately and before the August 2, 2012 proxy voting deadline Beneficial U.S. Silver shareholders (or non-registered shareholders) must contact their broker or other intermediary immediately and instruct them to vote AGAINST the proposed RX transaction
Registered shareholders should vote the BLUE proxy (available on Hecla's Home page at www.hecla-mining.com) AGAINST the proposed RX transaction prior to August 2, 2012; vote by fax (1-855-375-6916) to be sure your vote is cast before the deadline
Hecla Mining Company (NYSE: HL) (“Hecla”) today responded to the U.S. Silver Corporation (“U.S. Silver”) Board of Director's recommendation regarding Hecla's offers to acquire all of the outstanding common shares for CDN$1.80 per common share in cash and to acquire each outstanding common share purchase warrant for CDN$0.205 (its “in the money” amount based on such price per common share) (together, the “Hecla Offer”).
“There is nothing in the U.S. Silver Board's recommendation that changes our view that the RX transaction is inferior to the all cash Hecla Offer,” said Hecla's President and Chief Executive Officer, Phillips S. Baker, Jr. “Both transactions represent a change in control of U.S. Silver. However, the Hecla Offer delivers significant, immediate and certain value and liquidity to U.S. Silver shareholders, whereas the proposed RX transaction delivers significant risks, considerable debt and assets of questionable value.”
“Furthermore, since the Hecla Offer was announced, U.S. Silver common shares have traded in a narrow band around the $1.80 offer price, a 29% premium to the pre-offer price of $1.40. If the Hecla Offer is not consummated, it is reasonable to expect the U.S. Silver share price to decline back to the pre-offer price.”
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