Hecla Mining Buys Interest in Briston Metals
Hecla Mining Company (NYSE: HL) announced today that a wholly owned subsidiary of Hecla has entered into a subscription agreement to acquire 17,250,000 common shares of Brixton Metals Corporation (“Brixton”). Subject to receipt of approval by the TSX Venture Exchange, the common shares will be issued to the wholly owned subsidiary of Hecla from treasury at a price of $0.15 per common share for total gross proceeds to Brixton of $2,587,500. Upon completion of the transactions contemplated by the subscription agreement (the “Proposed Transaction”), the 17,250,000 common shares will represent and Hecla will exercise control over approximately 19.8% of the then outstanding common shares of Brixton. Hecla has the right to maintain its proportional ownership interest in Brixton through the exercise of a pre-emptive right. In addition, Hecla has the right to appoint one representative to the Board of Directors of Brixton and will be providing technical assistance to Brixton.
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