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.
Brixton is a Canadian-based resource exploration company currently focused on the exploration of the Thorn Project located in the Atlin Mining District in northern British Columbia.
“Exploration results at the Thorn property show several different styles of precious metal mineralization that highlight the potential for a substantive discovery,” said Hecla’s President and Chief Executive Officer Phillips S. Baker, Jr. “We’re excited to be an integral part of their plans with our investment and believe Brixton has a strong management team in place to build shareholder value. Hecla also brings a wealth of knowledge gained from more than 120 years of mining and exploration experience, and this expertise will benefit the Brixton team.”
The Proposed Transaction is subject to certain conditions, including the approval of the TSX Venture Exchange.The common shares will be acquired for investment purposes by Hecla. Hecla does not have any present intention to acquire ownership of, or control over, additional securities of Brixton. It is the intention of Hecla to evaluate its investment in Brixton on a continuing basis and such holdings may be increased or decreased in the future. In completing this investment Hecla is relying on Subsection 2.3(1) of Canadian National Instrument 45-106 – Prospectus and Registration Exemptions as Hecla is an accredited investor. For the purposes of Canadian National Instrument 62-103, the address of Hecla is 6500 N. Mineral Drive, Suite 200, Coeur d’Alene, Idaho, 83815, USA.