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Alexco shareholders urged to take Hecla deal

Alexco Resources shareholders have been recommended by an independent advisory firm to vote in favour, ahead of a 26 August deadline, of a proposed US$75 million acquisition of the company by Hecla Mining.
Alexco shareholders urged to take Hecla deal Alexco shareholders urged to take Hecla deal Alexco shareholders urged to take Hecla deal Alexco shareholders urged to take Hecla deal Alexco shareholders urged to take Hecla deal

Alexco Resources' Keno Hill

"The transaction makes strategic sense as shareholders will benefit from jurisdictional and project risk diversification, enhanced financing capacity and access to capital, and the benefits conferred by a consolidation of assets with Hecla," the advisory Institutional Shareholders Services said.

The two companies announced a definitive agreement for the acquisition on 5 July, which involves each outstanding common share of Alexco being exchanged for 0.116 of a share of Hecla common stock, implying a consideration of $0.47 per Alexco common share.

The deal will see the US' largest and highest-grade silver producer, Hecla, adding Canada's largest and highest-grade silver reserve to its portfolio.

Alexco owns and operates the majority of the historic Keno Hill Silver District in Canada's Yukon Territory.

Alexco's share price was $0.51 on 15 August, giving the company a market capitalisation of $88.82 million.

Hecla's share price was $4.47 with a market capitalisation of $2.42 billion.

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