Hecla Mining Company ( NYSE:HL) (Hecla) (Company) today reiterated the superiority of its agreed-upon transaction with Aurizon Mines Ltd. (TSX:ARZ) (NYSE:AZK) (Aurizon), announced on March 4, 2013, and strongly urges shareholders to reject the Alamos offer.
President and Chief Executive officer, Phillips S. Baker, Jr. said, "Our offer is superior to the Alamos offer by CAD$0.27, based on yesterday’s closing prices, and includes a 68% higher cash component. Tendering to the Alamos offer risks depriving Aurizon shareholders of the premium our offer represents as well as the significant upside we see in a Hecla-Aurizon combination. As a North America focused precious metals producer, we believe the combined company will deliver increased value well into the future."
Hecla’s arrangement agreement is superior to the unsolicited Alamos offer for many reasons, included but not limited to:
- Implied value is superior – Implied value of Hecla’s offer of CAD$4.55, based on closing prices on March 4, 2013, represents a CAD$0.27 premium to the current implied value of Alamos offer of C$4.28
- Larger cash component – Hecla’s agreement has a 68% higher cash component than the Alamos offer
- Superior business logic – the combined company will have low cost operating mines with long lives in mining friendly jurisdictions
- Reduced operating risk – 120 years of mining experience, most of it in underground mines similar to Casa Berardi
- Growth opportunities – enhanced exposure to exploration and pre-development projects
Separately, Aurizon today reiterated its recommendation that shareholders support the Hecla transaction and do not tender into the Alamos offer or withdraw tenders already made. Aurizon urged shareholders who have tendered to immediately withdraw tendered shares.Mr. Baker continued, “We believe that the combination of Aurizon and Hecla provides the best opportunity for operational synergies and the creation of lasting value for shareholders. The new company will have three long life low cost assets in mining friendly jurisdictions. We have followed Aurizon and Casa Berardi for the past 7 years and believe strongly in the asset, its exploration upside, and the benefits of where the project is located. We invite the Aurizon shareholders to join us as we build a leading diversified silver and gold producer.”